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Analysis of Financial Performance under The Equity Incentive System of Real Estate Companies ——Vanke as an Example

Shengxiao Zhong


Equity incentive is produced to solve the separation of ownership and management right brings principal-agent problem to enterprises. The company distributes the shares to the employees through the means of equity incentive. Equity incentive makes the company and
the employees establish the interest relationship in order to promote the development of the company, whether the enterprise implements the
equity incentive and how to implement it is of great significance to the development of the enterprise. At present, most of the related research
on equity incentive in China is based on the data of listed companies, but in the companies that implement equity incentive schemes, Many
companies can not successfully implement the equity incentive schemes because they just copy the design schemes of other companies.Because the real estate industry plays an important role in the people’s livelihood, the healthy development of the real estate industry deserves
our attention. After comprehensive consideration, this thesis decided to select one of the leading real estate companies in China —— Shenzhen Vanke Real Estate enterprises as the research object, mainly using literature research and case analysis to study Vanke equity incentive
scheme. This thesis analyzes its impact on financial performance and makes horizontal and vertical comparison. The results show that the
equity incentive system implemented by Vanke has a great impact on the financial performance of the company. The profitability of the company has improved, but the company’s solvency and development capacity has not changed significantly. At the same time, it also got the
positive market reaction.This report compares and analyzes the financial performance impact of equity incentive in different housing enterprises, and mainly takes Vanke as an example to analyze the problems existing in the scheme, which can provide reference opinions for other
enterprises in the same industry and solve common problems.


Equity Incentive; Financial Performance; Real Estate

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Included Database


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DOI: http://dx.doi.org/10.18686/fm.v9i2.12489