Research on the Implementation Effect of Equity Incentive in Liquor-making Industry: Taking Shanxi Fen Wine as an Example

Abstract

As an important tool to effectively alleviate agency problems and reduce business risks, equity incentive has been widely used in the liquor industry. This paper takes the equity incentive of Shanxi Fen wine as the research object, adopts the event research method to analyze the stock price effect after the implementation of the equity incentive, and analyzes the long-term financial performance by picking out the financial indicators such as growth ability, profitability, debt paying ability and operating ability, so as to spy out the implementation effect of the equity incentive of Shanxi Fen wine. The research shows that the market is generally satisfied with the expectation of Shanxi Fen wine's equity incentive scheme and the company's profitability, operation and development capabilities have been significantly improved after the implementation of equity incentive. The analysis found that Shanxi Fen wine equity incentive scheme still has some problems, such as less incentive, single performance evaluation index, shorter incentive period, etc. Based on this, specific measures are put forward, such as increasing the share of equity incentives, increasing incentives, enriching the index assessment system, and prolonging the cycle of equity incentives, in order to further improve the implementation effect of equity incentives.