Research On The Effect Of Stock Incentive On Corporate Performance Based On Stock Concentration

Since the beginning of non-tradable share reform in the second half of 2005 in China listed companies, China’s relevant laws and regulations on the equity incentive in the year by year, many listing Corporation also launched equity incentive plan. In the implementation of equity incentive plan, whether the company can optimize the ownership structure, choose the reasonable governance mechanism, adopt more efficient incentive measures to improve the company’s performance need to be studied further. Although domestic and foreign scholars have made a lot of research on the effect of stock option incentive on corporate performance in recent years, but the results are different. Therefore, in these backgrounds, the research on the implementation of the equity incentive of the listing Corporation in the era of the equity division is to be of great significance.This paper studies the relationship between equity incentive and corporate performance, Especially based on ownership concentration and equity incentive modes from the perspective of researching the relationship between equity incentive and corporate performance, It is helpful for us to understand whether the equity incentive can improve the performance of the company, and how to optimize the ownership structure and incentive model, to achieve a better incentive effect, so as to provide the relevant countermeasures and suggestions to optimize the corporate governance structure, the design and the implementation of equity incentive plan. First of all, this paper reviews the domestic and foreign scholars on the equity concentration, equity incentive and corporate performance of the relevant research literature, so as to put forward the content of this paper, and on the basis of the relevant theoretical. Secondly,select the listing corporation from Shenzhen and Shanghai A-share stock markets during 2010 to 2014 as the sample data, and use the company performance evaluation index established by factor analysis method as the explained variable, use the ownership concentration and the proportion of equity incentive as explanatory variables, use the company size and asset liability ratio as control variables, through theoretical analysis we propose three hypotheses and construct regression analysis model, carry on the factor analysis, descriptive statistical analysis, correlation regression analysis, test the validity of the model and hypothesis, and the empirical test results for the corresponding analysis.This paper draws the following conclusions through empirical analysis:The implementation of equity incentive plan in China’s listing Corporation is conducive to improving the performance of the company; The effect of stock option incentive mode on corporate performance is better than that of restricted stock incentive model; The equity incentive is the best for the enterprise to improve the performance of the company, and the implementation effect of the high concentration type enterprise is higher than that of the equity decentralized enterprise. Finally, according to the empirical results on the basis of the analysis, put forward relevant countermeasures and suggestions, and the deficiencies of the research put forward improvement strategies and recommendations.