Study On The Performance Of Equity Incentive High-tech Listing Corporation

Equity incentive is often as a kind of long-term incentive mechanism, and its positive role is to make the operators to participate in decision-making, share the profit and risk, so they can combine their own interests and the company interests through access to economic rights given by the company. Currently, China is actively promoting equity incentive system of corporate with the stock market environment becoming more and more mature. In2005, China Securities Regulatory Commission issued" the "Company Law", that’s "Securities Law Equity Incentive Management of Listed Companies (Trial)" and the SASAC and the Ministry of Finance jointly issued and implemented the law of "State Holding Listed Companies (Domestic) implementation of equity incentive pilot scheme" on2006On September30. With the deepening of China’s reform and businesses to complete shareholders’reform, the equity incentive system will be fully implemented. Part of listed companies proposed equity incentive plan, reforming the share of proposed equity incentive plan. At present, for the high-tech industry with high growth, high intelligence and high-risk characteristics, it’s the most common for the high-tech industry to carry out equity incentive according to statistics. The implementation effect of equity incentive mechanisms, executed by high-tech listed companies, has become the focus of this stage and the business community. So, whether are those equity incentive plans designed by China’s high-tech listed companies reasonable at this stage? How do those plans implanted by the high-tech listed companies affect performance of corporate? In order to achieve the desired results, how can they begin to improve these incentive schemes? Therefore, through single cases of equity incentive programs, based on the relevant equity incentive theory, using the case study method, this article analyzed the equity incentive background and contents of the cases in details, comprehensively comparing the effects of the implementation of equity incentive plan between the UF Software and ZTE. On this basis, the article study effect of implementation of equity incentive in the whole of Chinese high-tech industry. Then, we explored the correlation between the equity incentive and corporate performance by empirical study. The study found that the practice of the equity incentive plan of the enterprise is a certain role in promoting the performance of corporation. And there is curvilinear relationship between performance of the company and the proportion of equity incentive with interval effect. In addition, the level of assets and liabilities and ownership concentration equity incentive plan has certain substitution effect, Deren Electronic Case explained. The paper concludes deepen our understanding of the equity incentive plan and its effect on corporate performance and correlation between them, providing a theoretical and empirical evidence to support Chinese enterprises to better implement welfare management equity incentive plan.