Share Reform Era Listed Companies. Equity Incentive Effectiveness

Nowadays China's Shanghai and Shenzhen listed companies have completed share division reform except some particular cases which gradually make China's capital market perfect and provide favorable condition for corporate governance structure of listed companies. Meanwhile through the share division reform, the stock holders' consciousness is awaken, and they believe in the theories of market value. Institutional investors team is growing. The effectiveness of the capital market has been enhanced . Also the share price performance has been updated. Share division reform has offered a good opportunity and played an important part in carrying on share motivation measures for listed companies.First the paper reviews the history of listed company's share division reform and share motivation and then summarizes the China market characteristic during information times . On the basis, the paper discusses the share motivation of listed companies in agent mechanism and human capital.The article reviews the history of listed company's share division reform and concludes the share motivation situation and sums up the share motivation project, analyzes the positive effect for the listed company, including to reduce the cost, improve company performance and keep the talented staff. At the same time the paper also realizes due to the short time there exists some problems such as operator'"rent-seeking",single model and under-developed assessment indicator.In the last part, the paper gives some suggestions to solve the problems for share motivation including strengthening the governance of listed companies, further improving the management structure, speeding up the training of professional intendants and qualified employees .We believe with the improvement of the related measures, share motivation of listed companies will encourage the stockholders and administrative employees for both interest ,in favor of listed company's long-term development.