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Empirical Study Of The Performance Of Listed Companies's Equity Incentive Program Elements

Posted on:2012-06-16Degree:MasterType:Thesis
Country:ChinaCandidate:C L NiFull Text:PDF
GTID:2189330332983060Subject:Finance
Abstract/Summary:PDF Full Text Request
Equity incentive has always been one of the most attentive issues in capital market. In Europe, incentive is seen as an important solution of Principal-Agency problem in modern corporate. However, in Our country, equity incentive is still a new born issue. Although here is no experiments could be followed at present, it will surely become a main trend in the policy constructiveness of the listed companies, As long as the rapid development of our native stock market, more and more companies will face the problems of the equity incentive. So it is said a critical moment of equity incentive growth and its system construction now.Firstly the article reviewed the definition of the equity incentive and the correlative literature of this subject. Based on this, I give a meticulous summary on earlier studies of others. After an overall look on the equity incentive plans carried out in China, firstly, we use statistical analysis of the differences in the performance between the implementation of equity incentive for listed companies and non-equity incentive companies. The results showed that there were significant differences between them. Further we use of regression analysis the performance between equity incentives firm and the non-equity incentive companies, the results show that in the control of company size, financial leverage, growth, and ultimately control human nature of the case, equity incentives of corporate performance have a significant positive effect, which is derived from the previous confirmed the difference between the performance of this effect by the equity incentive factors. This part proved that the overall equity incentive is effective in China.And then further study the performance of the equity incentive elements. Specific object from the incentive, incentive ratio, inspired period, exercise price, vesting conditions,these five empirical regression model between the performance, get excited equity incentive factors and the correlation between corporate performance. This paper concluded that: (1)incentive object supervisors negatively correlated with firm performance; (2) the company's shares for the incentive of the total capital ratio between the performance with the performance of the company shows as a complex curve; (3) the equity incentive program performance period with the company's performance was also a complex curve; (4) The exercise price of the design and the actual stock price and company performance is directly proportional to the gap; (5) exercise condition is proportional to the level associated with firm performance. According to the empirical results, this paper argues equity incentive system in China to make a real play its due role for the above conclusions should be an effective incentive plan design, and constantly improve the implementation of equity incentive plans. So far, very little research related to domestic and international equity incentive plan elements with the specific relationship between corporate performance, I hope that through this research, for the listed companies in China equity incentive plan to provide some reference for the formulation and implementation.
Keywords/Search Tags:equity incentive, equity incentive factor, incentive object, incentive period, incentive ratio, exercise price, vesting conditions
PDF Full Text Request
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