The Research On Performance Effect Because Of Stock Incentive Of Listed Companies

As with the development of modern economy, the basic characteristic of the enterprise is the separation of the ownership and management. The agent problem has been one of the most important issues in the corporate governance for many years. One of the most efficient way to solve with the agent problem is the equity incentive mechanism, which has been widely used in academics and companies word widely. The stock rights incentive means that listed companies use the corporate stocks of their own companies as target and make long incentives to the directors, supervisors and top managers. The incentives focus on the future development of the company and connect it with the managers’expected returns. Our early equity incentive developed slowly, and lack of relevant laws and previous practical experience and it lead to the failure of the respected result. The Management Measures of the listed companies’equity incentive (for trial implementation) was issued in2006by the SEC. The law made the listed companies which have finished the equity division reform could choose to exercise the equity incentives. The institutional environment is further perfected, which have provided a good environment for the implementation of equity incentives. More and more listed companies implement the equity incentive in American,research about the equity incentives has not stop.and the results they get may not consistent with each other. After the exercise of equity incentive, its impact on corporate economic results, whether it could solve the agent expenses is the purpose of this article. This is important to the theories of equity incentive and the practice of it in our country.This article is on the basis of the methods of stock incentive and analysis of the previous implementation, study the financial effect of the stock incentive, with Shanghai and Shenzhen listed company which carried out their stock incentive plans from2009to2012.First of all, this paper reviews the researches of equity incentive on the basis of homely and broadly research achievements. This paper translates the related concepts and the theories of equity incentive and corporate performance. Including of the definition of equity incentive, the corporate performance and the main methods used in our country to incentive managers of listed companies. Secondly, I analyzed the implementation of equity incentive in China, from the different points of industry and the incentive scheme of the equity incentive implementation characteristics are described. This paper also point out some problems about the listed companies of equity incentive in China. Beside these, the paper put forward some influence factors of equity incentive levels from different aspects, among these variables, the corporate performance is measured as net return on equity, and through building the regression model and multiple variable linear regression method is used. Combining with the SPSS statistical analysis software, I got the factors influence the corporate performance. Also I consider the agent expenses from three aspects:the over final expenses、over investment and the excessive cashThe empirical results show that:On the one hand, the stock incentive could obviously reduce the over normal expenditure, over investment and excessive cash used and then finally reduce the agent expenses obviously. On the other hand, the practical of stock incentives has a positive economic effect in China. Further more, the use of stock options method of stock incentive has better influence on corporate than the method of restrict stock. The stock option may have better influence on the competition and the size of the corporate.Stock incentive has effect on increasing the corporate’s performance and has the characteristic of hysteresis. But with the imperfect economic and the law environments, the results of the practice of stock incentive need further research and experiments in the future. Finally, according to the implementation of stock incentive, the paper put forward some advices to perfect the external and internal environment.