Study About Impact On Firm Performance Of Equity Incentive System

Equity incentive system is a method of corporate governance which our country imported from foreign mature capital market, in foreign countries, it has become a modern corporate governance which can effectively solve the principal-agent relationship in the field as the main way. But in our country, the listed companies in equity incentive process are still in the research and exploration stage. During this period, the subjects of equity incentive came into view persistently in our country, especially the relationship between the system and the corporate performance become hot topics in theoretical and practice circles and related literature about the theoretical research presented largely, but research conclusions are hard to become unity; at the same time, the implementation of equity incentive system in our country’s situation is not ideal, many problems have appeared. In this situation, this paper will use empirical research to work on this controversial topic between China’s stake in incentive system and corporate performance, to enhance knowledge and understanding of the performance of equity incentive system, and provide theory support for the implementation of equity incentive system.In this paper, the first part mainly elaborated this article research background and significance, research purpose and method, and the thesis of ideas and framework; the second part mainly introduces related concepts and theories of equity incentive system, and mainly summarized the equity incentive system of the relevant literature and a brief evaluation, to lay the theoretical foundation for this study and provides the reference basis; the third part introduces the implementation situation of equity incentive system in China from multiple angles; for the forth part, we mainly introduce modek data and the variables of the empirical study;the fifth part explored the influence degree of the equity incentive on corporate performance from four dimensions:the companies’ developing ability, profitability and shareholder profitability and debt level as examining index by stepwise regression empirical analysis, and the performance of equity incentive system under different patterns; the sixth part,in view of the problems, based on some of the problems in the process of the implementation of equity incentive system, we listed the corresponding adjustment ways, in order to realize the significance of this article, then pointed out the innovation and deficiency of this article, and put forward some suggestions for future related research in the sixth part.Main research conclusions of this article:(1) the implementation of equity incentive of listed companies in China appeared with growth faster year by year, the characteristics of regional and industry distribution, listed companies tend to choose the restricted stock incentive mode;(2) the equity incentive level was significantly positive correlation with both company development ability and profit ability, but has significant negative correlation relationship with debt level of the company, no significant linear relationship with shareholder profitability;(3) to comparison, equity incentive level is most associated with the corporate profitability, the promoting effect is most obvious;(4) compared with stock options mode, equity incentive effects on company performance more obviously with the restricted stock incentive mode.