Study On The Relationship Between The Equity Incentive And Corporate Performance Of Listed Companies In China

In the modern enterprise system, ownership and the power of operation has been separated. Then principal-agent problem has been come into being. The different objective of owner and operator has leaded to contradiction in the company more and more serious. Equity incentives can solve this contradiction in some content. Equity incentives can make the owner and operator have the same objective. Then the operator will operate towards the long development of the company and the owners’shake. Decrease agency cost on operator. At the same time, equity incentive is belong to the salary structure of long-term incentives. The mainly incentive object is the enterprise core personnel. Purpose is to attract and motivate the core talents for enterprise long-term strategic goals and try hard.。The stock ownership incentive started late in our country, the earliest equity incentive was in1993in the company wanke. Then many companies implement equity incentives to help the long development of the company. But, due to the economic system environment restriction and the China securities market itself are not perfect and listed company level of management needs to be improved, and many other factors, the stock ownership incentive listed company still cannot say very mature. So it is necessary to from all aspects of the theory and reality of further research.The key point of this essay is the relationship between equity incentive and company performance. At first, the author has studied some theories about equity incentive. Then the author concludes past research of the relationship between equity incentive and company performance. Then the author has concluded the status quo and history of equity incentive. Then the author has done some empirical research on the relationship between equity incentive and company performance. In this process, the author chooses the proportion of equity incentive and the strength of equity incentive study the effect of equity incentive. Based on the theoretical and empirical research, the author has provides some suggestion on the development of equity incentive, include equity and salary system.