A Research On The Correlation Of Management Equity Incentive And Corporate Performance Of The Listed Companies In China's SME Board

In recent years,with the rapid development and constant perfection of companies' governance structures of SMEs in China,more and more SMEs are becoming listed companies in SME Board.As one important way to resolve principal-agent problem of enterprises,the equity incentive comes into the view of these SEMs and widely implemented.A research on the correlation of management equity incentive and corporate performance of the listed companies in China's SME Board will help us recognize implement status and effect of equity incentive on these companies and further perfect equity incentive mechanism and companies' governance structures.This thesis firstly reviews the theory of equity incentive and domestic and abroad related research,then gives a descriptive analysis on the present status of management equity incentive of listed companies in China's SME board.In the empirical study,the thesis sets up a regression model of corporate performance and management equity incentive.It selects annual reports of companies in SME board from 2005 to 2007 as sample data to study the correlation of management equity incentive and corporate performance,which bases on factor analysis and regression analysis and steady test with the application of SPSS 11.5 software.Through empirical research,the thesis draws the following conclusions:there is a Significantly linear positive correlation between management equity incentive and corporate performance of the listed companies in China' SME board,which indicates that management equity incentive mechanism plays an active roll in the field of SME board.In the last part,the thesis puts forward related solutions and suggestions according to the empirical research conclusion and current status of China equity incentive mechanism.