The Factors Of That Affect Listed Company Equity Incentive (LCEI) And The Effects Of Incentive

Listed Company Equity Incentive (LCEI) has become an important topic on the theoretical research, especially after some policies issued which is the"Trial Approach for Management of LCEI", the changes of Company Law and Securities Law. This research uses the normative and empirical research methods to analyze the data which from 101 examples of equity incentive in 71 Listed Companies in 2009. Also, it analyzes the situation of LCEI, intrinsic link between various factors and listed equity incentive and tests the effects of LCEI. Consequently, it point out some results:Firstly, form overall conditions of the LCEI, industry distributes more widespread, but more than half proportion of listed companies is manufacturing. Non-state controlled listed companies are more actively involved in the equity incentive plan; the companies which are use the equity incentive plans perform very well in their domain. According to the characteristics of the programs on LCEI, this research found out that the size of equity incentive is too large, but beneficiaries is too narrow; also, the main way is stock options; and the performance of evaluation indicators system of exercising rights are unitary.Secondly, the theoretical analysis shows that operating performance of listed companies is underlying factors of equity incentive. At the same time, the different sizes listed companies have different incentive programs; non-state controlled listed companies are more inclined to equity incentive how to choose the equity incentive plan depends on the nature and the type of the company.In addition, the empirical research indicated that corporate performance and equity incentive are significantly positive correlation; Non-state controlled listed companies are more inclined to equity incentive; LCEI and dummy variables that is the size of Listed Companies are negative correlation, but not considerably; Industry factors of LCEI is not obviously.Finally, Equity incentive made a significantly decline in corporate performance in the following few years, this means the incentive effects is worrying;With different incentives way, incentive effects results were negative, however, it just a small gap. As a result, it point out some suggestions to improve the theory of enterprise performance incentives.