Equity Incentives Of Listed Companies On Corporate Performance

With the degree of China’s market-oriented continuous improvement and increasing competitive environment, corporate governance issues have become increasingly prominent.Explore the deeper reasons, we find the crux of the problem is the separation of the company and ownership.The company’s management and shareholders for their own interests to consider, as a rational economic man they pursue their own interests to maximize the process of conflict of interest.The performance of the information asymmetry between shareholders and managers, contracts are incomplete, manager’s efforts standard is unable to determine other aspects.This has resulted in inefficient management, business performance is not high, less competitive and other consequences, eventually led to the company shareholders’ rights are being infringed.Equity incentive is a good medicine to resolve this conflict, it enables the company’s management goals and interests with the shareholders of the Company consistent with the management to take full account of the company’s long-term development in the developing hair strategic.With China’s split share structure reform to complete and state-owned listed company equity incentives to the promulgation of the Measures for the Administration, a growing number of state-owned listed companies are being implemented a management equity incentives. Gree, the combination of the two methods of theoretical and empirical, applied to the analysis of both the relationship between company performance and incentive stock options, focusing on the following aspects are discussed:First,To listed equity incentive as the background on the concepts involved and the related equity incentive theory, the necessity of implementation of incentive stock options discussed as the basis for listed companies.Second, it analyzes the Gree equity incentive implementation process and results, and the behavior of managers as a starting point to analyze the impact of incentive stock options.Gree is both a listed company, is also state-owned Corporation, the study discusses the development of profiles and operating status, and based on the specific circumstances of equity incentive after the implementation of Gree has a certainrepresentative. Third, from the relationship between theory, financial results and measurement of three perspectives of the company equity incentive and economic performance analysis, statistical analysis based on the use of financial and measurement of two analytical tools for analysis. From the theoretical level, equity incentives and the role of the two on economic performance, on the one hand, equity incentives can correct the management objectives to achieve in line with the company’s goals, on the other hand, when the incentive is excessive, the managers will deviate from the interests of the company. The empirical results show that the Gree equity incentive and its economic performance is positively correlated, but its impact is limited.Finally, a comprehensive assessment of management performance and diversification and long-term incentives and other measures to solve the principal-agent problems plagued the shareholders and management, provide recommendations for the state-owned listed companies preparing for the implementation of incentive stock options.