Equity Incentive Effects And Influencing Factors Of Listed Companies In China

Equity incentive system was build in1953,which has gone through nearly60years ofpractice, with the modern enterprise system perfecting ceaselessly today, as a long-termincentive way, more and more companies began to use this incentive way. in our country,with the development of market economy and capital market and modern enterprise systeminproved quickly, equity incentive system which was input from other country, isincreasingly being recognized and accepted by the majority of listed companies. SinceShenzhen Vanke firstly launched quity incentive plan in1993, it was through developmentof ten years, especially since the non-tradable share reform in2006, China’s listedcompanies equity incentive system implementation of enterprise ownership structure andlegal conditions of our country, the implementation of equity incentive in the company hasincreased year by year. Nearly two years, over hundreds of company launch equityincentive. Under this background, the paper on the implementation of equity incentiveeffect and its influence factors are analyzed research will have great realistic significance.This paper first reviewed previouse classic literature and research on the equityincentive.and draw my own understanding. Then the paper analysis the basic concept,characteristics of equity incentive, and introduced the equity incentive incentive mode, andthe theoretical foundation of equity incentive, such as principal-agent theory, humancapital theory, property rights theory. Based on this theories basis,this paper furtheranalyzes domestic and international current situation of the implementation of equityincentive.During the empirical analysis, this paper firstly conduct to descriptive statisticsanalysis on the implementation of equity incentive during the period of2007-2010inChina, lay the foundation for later research. Equity incentive as a kind of incentive means,the ultimate role should performance in improving the performance of listed companies.Based on the previous study, this paper selected139listed companies as samples, whichhave implement Equity incentive,selected10financial index to process principalcomponent analysis method to find the comprehensive performance of enterprises, and theproportion of management shareholding as explanatory variables, then build model toreveal the relationship of the equity incentive and the performance of listed companies.Finally come to following main conclusions: the proportion of management shareholdingand corporate performance had no linear correlation, so the effect of Equity incentive was uncertain. Then This paper analyzed the effect factors of equity incentive from themacroscopic and microscopic aspects, and put forward some suggestion.