A Study On The Effect And Influencing Factors Of Stock Exchanges In China 's Listed Companies

Equity incentive problem in recent years has become the focus of attention of the financial community.In the contemporary business,it has become a kind of incentives with creative meaning. Equity incentive is to encourage and urge managers to work harder,to make them work with the majority shareholder of the company with the same goal. It plays an important role in improving corporate structure, in maximizing human resources’ initiative and in guiding the company to function well. In western countries, the equity incentive has developed for several years, scholars have made in-depth research of it, the research result indicate that the implementation of equity incentive can improve business performance. China also has some researchers conducted a study on the equity incentive, due to the implementation of equity incentive in our country is relatively short, the researcher’s result obtained for its implementation are not the same as that of the foreign researchers. The quality of the implementation of equity incentive effects related to long-term development of the company, the paper aims to study the effect of the implementation of equity incentive and the factors affecting the implementation.and provide reasonable countermeasures and suggestions, to make equity incentive plays a greater role in the performance of the company.This paper consists of six parts: The first part introduces the research background, significance, research ideas and methods, as well as comments on the relevant literature. The second part introduces the concepts, models and theoretical basis of equity incentives. The third part analyzes the status of implementation of equity incentive listed companies in China, such as the number of implementation, company’s system, in which walk the company is, stocks resource and so on. The fourth part list the companies that use the equity incentive and compare the data from 2006 to 2012 with that of 2007 to 2013, and make transverse and longitudinal comparative analysis of the effect of the implementation of equity incentive. The fifth part verify whether the selected factors affecting the implementation of equity incentive effect through construct regression model. Part VI summarized all the conclusions by combining context, and make relevant policy recommendations, and point out the limitations of this paper.After the study, we believe that the use of equity incentive for management can help improve the performance of the company. Most of the factors that affect the implementation of equity incentive, the ownership concentration, size of the company, the company’s growth, motivation level, the company’s capital structure are positively associated with the implementation of equity incentive effect, we can understand it in this way:the higher the concentration of equity, the better of the company’s growth,the larger the of the company’s size, the higher the level of equity incentives, the higher of the company’s asset-liability ratio,the greater benefit the company will get for the implementation of equity incentive,of all the factors,the ownership concentration is the least important one.The competitive factors in the market is largely affected the implementation of equity incentive effect, the less competition of the company’s walk,the greater benefit the company will get from the implementation of equity incentive.probably because most of the less competitive companies are in a walk that is monopoly.Based on the empirical results, combined with China’s actual situation,This paper made the following recommendations: Firstly, equity incentive plan must be based on the current development of the company and in close connection with the company’s development plan, at the same time,strengthen the improvement of the structure of listed companies, and take closer look at the company’s management level; secondly, to accelerate the market system of the professional manager, improve the performance evaluation mechanism, so that the listed companies’ evaluation mechanism can day by day be more standardized; last but not least, following by the appropriate international and domestic laws and regulations, to further improve the listed companies’ equity incentive system, to cultivate mature, steady, reasonable capital markets.