Research On The Implementing Effect Of Equity Incentive Of Listed Companies In China

Equity incentive system is a long-term incentive mechanism, under the condition of asymmetric information and separation of ownership and management, in which some shares were granted to the managers in order to convergent the interests between the principal and the agent, to reduce the short-term management behavior and then avoid the maximum of managers'personal interest and achieve the maximum of shareholders'interests. The managers under this incentive mechanism can act from the long-term perspective of the company to improve company's performance from the development capacity and creativity.Since the 1960s, when the high-tech companies of U.S.A. first implemented the equity incentives system, it has considerately developed both in theory and practice in the western countries. In 1993, ShenZhen Vanke took a big step to implement equity-based incentives. After that, the equity incentives have raised much attention around the market. Especially after the share-split reform, which solved the confrontations between non-tradable shares and tradable shares, the governance environment of the listed company has been increasingly better. Meanwhile, in the legal and policy environment, 2006 <Regulation of Equity Incentives Management >(On Trial), < Corporation Law>, and <Securities Law> were also revised, which is a breakthrough in the aspects of company shares repurchasing, management transfer of stock and etc. The implementation of equity-based incentives under this environment tended to be more specialized and rational.Aiming at the fundamental realities of our country after the split-share reform, this article discussed the importance of equity incentive theory and its reality significance from the practical perspective. This article, after reviewing the experience and conclusion of the study references home and abroad, is based on the human capital theory, principal-agent theory and two-factor theory, and combined with the equity incentive experience status of the listed companies, and used the listed companies with the share-split reform as samples, and used empirical method to check the incentive results after implementing the equity incentive mechanism, and also compared the effects between the listed companies from three distinctive aspects : the means of equity incentive, the underlying instrument of equity incentive and the incentive period of the equity incentive. The study results show the implement effect of the listed companies with split-share reform in our country is in evidence. Under different incentive means, different stocks'sources and validity of different lengths, the implementation results are also different. According to the study results, this article is trying to provide the reasonable suggestions on the future macroeconomics policy-making, and corporate equity incentive system implementation and improvement.