Equity Incentive Impact On Performance Of Listed Companies After Split Share Structure Reform

Equity incentives as a long-term incentives, and a new distribution system, mainly byreducing agency costs to solve the principal-agent problems, improve business performance,such incentives have been widely used in developed Western countries, and got good resultsand equity incentive effective implementation requires a variety of mature condition, after thesplit share structure reform, China’s stock market realize the Entire Circulation, ourimplementation of incentive stock options market to improve the environment while the statehas adopted regulations to regulate the equity incentive plan, for furtherlaid the foundation forthe implementation of equity incentive. What the impact of these new features arise as towhether the effect on the equity incentive? This study, in order to test the effect of theimplementation of China’s equity incentive to provide a basis to further improve our corporatepay system and performance appraisal system, as well as to further improve the equityincentive theory and corporate governance theory has important practical and theoreticalsignificance.Paper first review the relevant theory and literature on incentive stock options, and thenelaborate on the split share structure reform of listed after the implementation of equityincentive environment changes, press the industry, control over the nature and incentivemodels to China after the split share structure reform of listed companies implementation ofincentive stock options to describe the qualitative analysis of first pass effect of the horizontaland vertical equity incentive, followed by quantitative analysis, and the introduction ofcontrol variables analysis, in addition to the introduction of dummy variables controllingnature and incentive model of the enterprise’s equity incentive the effect of further analysis,the final summary of the results of theoretical and empirical analysis on the effect of incentivestock options and put forward policy recommendations.