Study On The Performance Of Equity Incentive System For Chinese Listed Companies After The Non-tradable Shares Reform

Equity incentive system, as a new kind of distribution system and long-term incentive system, is regarded as an important way to solve the agency problem in modern enterprises. It is meaningful to improve corporate governance structure, reduce agent costs and enhance business performance. This system has been widely used in mature capital markets, like Europe and the United States capital markets, and has achieved great successes.In China, due to various constraints, equity incentive system started late, but the stock share reform of Chinese listed companies, which began in May 2005, provided favorable conditions for the implementation of equity incentive system. With the successful completion of stock share reform, the Chinese stock market has come into a new era, and the equity incentive system has begun to become the new theme of Chinese capital market. Then, after entering into such a new era, does it appear any new features during the process of implementing equity incentive system, what is the effectiveness of its implementation, whether this system has improved corporate performances to some extent? This paper attempts to do a research about these questions, so as to provide evidences of how to further improve equity incentive system of Chinese listed companies. It also has important theoretical and practical significance to improve the corporate governance performance of Chinese listed companies.This paper firstly reviews the theories and literature of equity incentive, and then does a systematic, as well as comprehensive descriptive statistical analysis of the implementation of equity incentive system in China, in the terms of industry, business nature, geography, and incentive mode. In the part of empirical analysis, this paper first does a horizontal and vertical comparison of incentive effects of equity incentive system in Chinese listed companies. And then this paper does a further research of the incentive effects in the quantitative point of view. That is, by introducing relevant control variables, doing a research of the incentive effects using multivariate regression analysis methods. Finally, in considering of the theoretical and empirical analysis results, this paper does a summary of the whole text, and puts up some recommendations and suggestions in accordance with the research results.