An Empirical Study On The Governance Effect Of Stock Incentive

As an important long-term incentive mechanism, equity incentive bonds the managers’personal interests and the shareholders’interests together closely. To a certain extent, it could solve the inconsistent targets between the business owners and managers, encourage managers to improve performance and maximize enterprises’value. To better realize companys’ long-term growth of value and to maintain the sustainable development, one of the most essential corporate governance methods for companys is to formulate an effective incentive system to match the regulatory system. Nowadys, equity incentive plans are widely accepted by the market practice. However, the domestic research of following areas about incentive plans has not been giving out assured answers, such as how about the corporate governance effects of incentive plans, how about the differences among using different equity incentives’modes, and what about the characters of companys selecting different euity incentives’modes. Particularly, there are little domestic research about the comparison of different modes of equity incentives.Thus, on the foundation of relevant theories and literature research, the thesis studies the corporate governance effects of equity incentives through theoretical analysis and empirical research methods from various angles, including comparing the differences in market and accounting performance between companys whether implement incentive plans or not; comparing whether there is difference in market and accounting performance area after companys using different equity incentives’modes, and analyse whether there is distinct character among companys selecting different modes.The study founds that:1. Listed companies have better market performance and accounting performance after taking equity incentives plans than companies without equity incentives plans.2. Different modes of equity incentive plans do not bring to listed companies significant different corporate governance effects.3. The companies selecting different modes of equity incentives plans have significant different growing characters, but there is no significant difference in the area of cash and cash equivalents, debt levels and executives’salary levels, etc.On the basis of the above research, this paper analyzes and suggests the applicability for two main modes of equity incentives modes, puts forward the problems exsisting in equity incentives plans and makes opinions and suggestions accordingly.