Research On The Effect Of Equity Incentive On Performance Of Listed Companies

As a long-term incentive mechanism to solve the principal-agent problem of modern enterprises,equity incentive is widely used in listed companies.The number of implementation plans of equity incentive for listed companies in China has been increasing year by year.In order to make the effect of equity incentive better,there are more studies on the content of equity incentive in China,at the same time,we also learn from the experience of many overseas mature markets.However,in the process of implementation,there will still be many problems,but also show China's unique problems.I have worked in listed companies for many years and found that the influence of equity incentive on enterprise performance is not directly played,but is realized through the change of executive behavior.Some researchers have made the same point.This paper makes an empirical study on the relationship between equity incentive and business performance by taking the behavior change of senior management as an intermediary variableAfter the implementation of equity incentive,it will cause two kinds of behavior changes of executives' in-role behavior and extra-role behavior.In-role behavior(also known as core task behavior)is the behavior required by the organization.It is the normal working behavior of the organization and a part of the executive's work,which is reflected in the normal compensation system of the organization.Extra-role behavior is similar to organizational citizenship behavior,which is "innovation and spontaneous behavior".Extra-role behavior is not mandatory in the job description.It is an individual's choice,not an organization's reward or punishment.The original intention of the listed companies to implement equity incentive is to avoid the short-term behavior of the executives and to align the corporate interests with the interests of the executives.It can be seen that the implementation of equity incentive by listed companies plays a role in regulating the inside behavior of senior executives and encouraging their outside behavior.This article selects ten listed companies as samples,issues questionnaires to them,and studies the impact of equity incentives that use senior executive behavior as an intermediary variable on corporate performance under other conditions unchanged.Constructed the theoretical basis and specific selection principles for the evaluation indicators of executives' behavior.In order to formulate an evaluation system suitable for executive behavior,and take questionnaires to collect relevant data on executive behavior of listed companies,and use regression methods to analyze.By constructing a practical model,it is found that MH should be used as an explanatory variable,executive behavior changes should be used as an intermediary variable,and ROE should be used as an interpreted variable.The relationship between business performance.The results of the study show that the company's equity incentives have a positive positive impact on the executive's in-and out-of-role behaviors,so that the executives exhibit positive behaviors that meet the company's expectations after the implementation of equity incentives,thereby enhancing corporate management and promoting corporate performance.In addition,the research also shows that equity concentration has a certain negative adjustment effect on the above process,which is mainly reflected in that the increase in corporate equity concentration will inhibit the promotion effect of equity incentives on corporate executives' behavior,thus indirectly affecting the company's operating performance.It is recommended that during the implementation of equity incentives,listed companies should pay attention to executives from the perspective of behavior changes,and pay more attention to behavior changes while focusing on results.Listed companies that implement equity incentives should also pay attention to equity concentration.The higher the equity concent ration,the worse the measures to implement equity incentives.