Research On The Motivation And Exercise Condition Of Entrepreneurial Motivation In

Employee stock incentive plan was born in the United States in1952and has been developed rapidly since the late1980s. Now it has been widely used in many industrialized countries. In the process of development in practice, employee stock incentive plan also caused a great concern of the media and governments, provides an interesting field of research for economists. Scholars from different countries did theoretical or empirical research on various aspects, such as program design, motivation and the consequences of implementation. As for the motivation for companies to take equity incentive plan, economists have given several possible explanations. The most common explanation is the departure from the principal-agent theory, which indicate that the root cause of equity incentive is the separation of operating and ownership in modern corporation, and the main purpose is to ally managers and shareholders to reduce agency costs and improve the performance of the company.Compared with America, China’s capital market is young and immature, but the exploration for equity incentive plan is energetic. In2006, the SFC published equity incentive management approach for listed company, provide legal support and standardize for equity incentive plan. Since then equity incentive plan has been developed rapidly, and become a hot research topic of domestic academia. Compared to the United States, domestic research focused more on the impact of incentive plan’s implementation on company performance and conduct of managers.The proportion of companies adopted equity incentive was significantly higher on GEM than the Main Board. GEM companies are basically growing private enterprises, of which operating decisions are more freely and more market-oriented. So this paper choose the GEM listed companies as samples, analysis the status of the implementation of incentive plans, summary the features of plans’design, and look for the reasons on the adoption of equity incentive plans.Firstly, equity incentive drafts were analyzed. As of the end of2012, a total of96company announcement equity incentive draft, currently27%of the companies listed on GEM. The industry characteristic of companies which adopted equity incentive plans was not obvious. Analysis their equity incentive draft, we found that the validity periods of GEM companies incentive stock options was short, the indicator used in vesting conditions is single, and executive incentive shares accounted for the proportion of the total number of incentive is very low.Then we use a dummy variable indicating whether a company adopted equity incentive plans as the dependent variable, select independent variables on corporate identity, corporate governance and executive features, and use descriptive statistics and logistic regression analysis to find the factors affecting the companies’choice on incentive stock options. According to the results of empirical analysis, we draw the following conclusions:1.The lower average age of executives, the company is more likely to choose equity incentive. It illustrate that one important motivation of the company is to keep the young human capital.2. When the company’s ROA is the lower, the company is more likely to choose equity incentive. It illustrate that the company believe that equity incentive can inspire employees and thus improve the performance of the company. And they are likely to consider equity incentives when the profitability of firm is not satisfactory.3. There is a significant positive correlation between the number of the company’s employees and the tendency of using equity incentive. It illustrate that equity incentive plans are used to reduce regulatory costs.