Analysis Of The Implementing Effect Of Equity Incentive Mechanism And Its Influential Factors Based On The Listed Company Of China

With the company's separation of ownership and management rights, the shareholders, as owners, in order to reduce the short-term behavior of the operators to make them more concerned about the long-term interests of enterprises, and better for the company's services, shareholder interests, corporate interests and operators of personal interests combination of a long-term incentives-share incentive system have come into being. Equity incentives is a kind of incentive methods,which operator has been given by the form of company stock to give enterprise managers a certain economic rights, enabling them to participate as shareholders, corporate decision-making share of profits, risk taking, and thus diligence for the company's long-term development.Equity incentive makes the management of enterprises has also become a shareholder, make the company interests and their individual interests reach consensus. The interests of enterprise management and shareholders bundled together, making the interests of management and corporate community, for the management of such a system is pressure and also is the driving force, just as to give management to bring a "golden handcuffs", which reduces the commission agency costs. Therefore, the use of equity incentive pay policy can solve the joint-stock company management only concerned about short-term benefits, decision-making short-term, ignoring the shortcomings of corporate long-term development, while conducive to increased performance of the company to improve management and decision-making levels, to reduce short-sighted behavior. Equity incentives help to overcome the "internal control" is out of control problems and resolve the traditional disadvantages of incentive mechanisms. Theory of modern business and practice abroad also shows that equity incentives to improve the corporate governance structure, to reduce agency costs, improve management efficiency, enhance its market competitiveness has played a positive In short, the implementation of equity incentives is beneficial to the companies. In western countries, the implementation of equity incentives to improve the company's performance has basically been verified, but because of our national conditions and the system of special effects, equity incentive effect on corporate performance is also in dispute. In recent years, China implementation of equity incentives increasing number of listed companies, and its purpose was wanted to improve the company's performance by the use of equity incentives; equity incentives as a long-term incentive mechanism in China, a number of listed companies in China have an important equity-based incentive as the company's long-term incentives. This paper is based on the implementation of equity-based incentives in China A-share listed companies object of study, to analyze the equity incentives to explore the performance of listed companies of China influence and focus on the impact of the implementation of equity incentive effects of the factors that empirical research with a view to listing on the implementation of the company's equity incentive to provide some reference.In this paper, the relevance of the theory of equity incentives have been reviewed, introducing the meaning of equity incentives and specific, and through the detail of human capital theory, principal-agent theory, transaction cost theory and two-factor theory of this paper lay a theoretical foundation for the study; and then In this paper, comparative analysis of selected samples from the implementation of equity incentive effects of the research in this study, based on Based on previous studies, this paper selected six factors which may affect the implementation of equity incentive effects to analysis, through the establishment of regression model, and ultimately concluded.After the implementation of equity incentive, the sample company's overall performance has improved, but showed a downward trend year by year, shows that our implementation of equity incentive system did not achieve the desired results. This may be because, equity incentive system in China is not mature enough to use, relevant laws and regulations is also a progressive development in the past two years, while in previous years in the development equity incentive plans of the Chinese listed companies, its arbitrary large and invalid. Equity-based incentives in the development of conditions related to the right of the line, line of the right period of time is too loose, so that equity-based incentives to become a listed company's executives are plundering the wealth of the channel, making the long-term equity incentive effect of greatly reduced, or even turn out loss in the listed companies because of the equity incentive.In general, there have a certain effect of the implementation of equity incentive in the Chinese listed companies, but because of lack of capital market efficiency and inadequate of the corporate governance structure, the long-term effects of the implementation of equity incentive are not obvious. In order to make equity-based incentives have to really play a strong role to improve company performance, it should vigorously improve our capital market and improve the corporate governance structure, so that the implementation of equity-based incentives have a good internal and external environment.From the study of the paper can know that, when a listed company in the implementation of equity incentive, the company's own scale factors and the ultimately control human factors have a little impact on the implementation of results, but the capital structure and market competition factors have significantly effect on the implementation of equity incentive. In addition, in the development of equity incentive plans, desire to develop in line with company's own incentive model, because the incentive model will ultimately affect the company's equity incentive effects. Therefore, the development of listed companies in China in the equity incentive programs should be comprehensive consideration many factors, in order to make equity incentive plan to achieve the desired effect.The main contribution of this paper is:In the study of this article, the study sample of select was a real sense of listed companies to implement equity-based incentives. And in the past on Chinese listed companies, the implementation of equity incentive effect of the study, most of the studies just to raise its stake as the number of equity-based incentives, and thus to establish a regression model to analysis, in so doing, it not take into account senior management stock ownership is not the same incentive, many executives of listed companies have a stake, but not all received by equity-based incentives. Therefore, this article on the sample selected overcome the shortcoming, it using a real implementation of the incentive stock listed companies, these companies are clearly in the annual report or announcement of the implementation of equity-based incentives and equity incentives that they have the exact implementation time, and model, so that this study will allow a higher credibility.In addition, in recent years, experts and scholars in China, the study of equity-based incentives more and more, but most are directed at the performance of listed companies equity incentive, study about factors affecting equity-based incentives are less, while this article focused on the impact of equity incentive factors, mainly to study what factors make equity-based incentives have an impact on the performance of the company. Through the study of factors affecting equity incentive can let us know, what factors caused the equity-based incentives can play a better role, and the study can provide practical theory to companies in the implementation of equity-based incentives.