Research On The Implementation Effect Of Kunlun Wanwei’s Continuous Equity Incentive

With the rapid progress of modern technology and market economy,online game companies have developed rapidly in China.At present,the competition for talents among online game companies is becoming increasingly fierce.How to ensure the stability of employees and attract more outstanding talents has become a key issue for online game companies to improve their competitiveness.Equity incentive is an important means for my country’s listed companies to retain talents,and it has also been widely used in online game companies.Therefore,this paper selects BEIJING KUNLUN TECH CO.,LTD.as a case to compare the status of its implementation of equity incentives,and compares it from the aspects of EVA performance,financial performance,innovation performance,and different scheme designs,to clarify the characteristics and influence of Kunlun Wanwei’s equity incentives.So as to provide a favorable basis for domestic online game companies to formulate and implement equity incentive plans in the future.This paper takes Kunlun Wanwei,a listed online game company,as the research object.Evaluate the effect of equity incentives from three aspects: market,financial and non-financial.During the announcement stage of the equity incentive draft,according to the event research method,the cumulative abnormal return rate(CAR)and abnormal return rate(AR)were used to evaluate the short-term benefits realized by the company;The efficacy coefficient method comprehensively analyzes the implementation effect of equity incentives,and finally draws the following conclusions:(1)After the introduction of the stock incentive plan in 2015,Kunlun Wanwei’s short-term market has a positive response;Kunlun Wanwei’s financial indicators have improved significantly,and the company’s overall situation has shown an upward trend.In the long run,some results have been achieved,but there is still room for improvement;(2)After the implementation of the equity incentive plan,the company has greatly increased its R&D expenditure,and the growth rate of R&D expenditure is as high as 10%.The ability of R&D and innovation has been improved.Although there is still a certain loss of personnel,the number of employees with a master’s degree or above is generally on the rise.In 2020,compared with 2014,the number of employees with a master’s degree increased by 40.Finally,this paper puts forward the following suggestions: optimize the equity incentive plan,adjust the incentive mechanism to make it more in line with the development of the enterprise,provide employees with benefits while ensuring incentives;improve the corporate governance structure and strengthen the company’s internal control to prevent Executives use equity incentives for earnings management.