Research On The Impact Of Corporate Governance Struture Upon The Incentive Nature Of Equity Incentive Program

The goal of this paper is to study the effect of corporate governancestructure on the incentive nature of equity incentive program. All the researchwork starts through the following steps:First of all, through reviewing the research literature about theinfluencing factors of incentive nature of equity incentive program at homeand abroad, this paper proposes the limitations of existing study and finds theopportunity of the thesis, and summarizes the meaning and purpose of thethesis. Followed by, this paper expounds the research contents and researchmethods, defines the related concepts, and introduces the basic theory isinvolved.Secondly, using the listed companies announced equity incentiveprogram from2009to2011at the main board of Securities ExchangeMarkets of Shanghai and Shenzhen as research samples, this paper analyzesthe present situation of corporate governance structure and equity incentiveprogram-designing. On the basis, this paper constructs the variable group ofcompany governance structure and the variable group of equity incentiveprogram motivation, and analyzes the relationship of both by the canonical correlation analysis. The analysis results show that the relationship is existedbetween corporate governance structure and the equity incentive programmotivation.Again, in order to further inspecting the influence degree and functiondirection of the single variable of corporate governance structure variablegroup on equity incentive program motivation, because of the differentincentive, equity incentive program can be divided into incentive-type andwelfare-type. Thus the characteristics of equity incentive program used asthe dependent variable, and the corporate governance structure as theindependent variables, constructing the Logistic regression model, the paperstudies the relationship between them. Regression results show thatexecutives shareholding proportion and the degree of ownershipconcentration have negative correlation with the equity incentive programmotivation, but the first shareholder control and setting of chairman of theboard and general manager have positive correlation with the equity incentiveprogram motivation.Finally, according to the empirical study conclusion, combining with thecharacteristics of corporate governance and China’s capital market environment, this paper proposes countermeasures and suggestions aboutimproving the internal management environment and external marketenvironment of corporate,in order to improving the operating environment ofthe equity incentive and strengthening its incentive effect.