The Empirical Study Of The Performance Of Equity Incentive In Information Technology Industry Listed Companies

According to Modern Management Theory, equity incentive is a kind of effective long-term incentive system and a kind of motivational pattern which meets the long-term development of the modern enterprises. Because of the high intelligence, high growth, high risk and high profitable inherent characteristics of information technology enterprises, the enterprises with equity incentive in the stage of implementation are most in the number in information technology industry at present Is the equity incentive program design of information technology industry reasonable in our country? What about the implementation effect of the equity incentive-program? Doing research on these problems has very important practical significance. This thesis conducts the empirical researches on the performance of equity incentive of the listed companies of information technology industry in China.This thesis regards the listed companies of information technology industry implemented the equity incentive system between2006-2012, as the research object to equity incentive according to marketing effects and performance effects. First of all, the author uses the events study methodology to examine the marketing effect of equity incentives in the listed companies. Secondly, by the method of factor analysis, the author gets comprehensive achievement quota, reflecting the company’s profitability, solvency, growth ability and the ability of capital operation. This quota is taken as the dependent variable to represent the performance of enterprises, and the ratio of the stocks used for incentive to the total capital stocks as independent variables. The author carries out the linear regression to examine the performance effects.Through empirical research, the following conclusions:(1) the average excess return ARR does not obey normal T distribution with mean0, the information technology industry events declared incentive stock options can cause some impact on stock prices, with short-term wealth effects. Moreover, the average excess return from the event window [-10,10] the rate of change of circumstances AARt and cumulative abnormal return CARt point of view, the stock market listed companies for the information technology industry has had a positive declaration positive response equity incentive plan events, digestion sufficiently in a short time options actuation event, the effectiveness in improving the security market.(2)for the results of the performance incentive stock options, this article from the enterprise’s profitability, solvency, operation and development capacity of eight financial indicators in four areas starting comprehensive factor derived by factor analysis, used to evaluate the integrated enterprise results. After obtaining comprehensive factor, the proportion of the equity incentive MSR as independent variables, comprehensive factor F as the dependent variable, through regression analysis model. Empirical evidence shows that there is not a positive relationship between the proportion of the equity incentive and corporate performance, and by the results of the regression testing performance, the effect of the incentive equity is not obvious.There are five chapters, each chapter as follows:First, introduction, this section introduces the background and significance of this paper, reviews the relevant literature in our country and abroad, and outlines the research methods, technology roadmap and innovation; Second, equity incentive theoretical foundation and main mode, this section describes the relative theoretical foundation including the principal-agent theory and human capital theory, and then introduces eight major modes of equity incentive; Third, the causes of the implementation of information technology industry companies and the situation analysis, this section demonstrates the reasons of the equity incentive implementation in information technology listed companies, and then analyze the status of incentive stock options, including the type of business of the companies which implemented equity incentive, the equity incentives mode, the source of incentive stock options, etc; Fourth, the empirical analysis, this section firstly introduces the measure and evaluate method of the incentive performance equity, then by event study,analyzes the equity incentive market performance of the information technology industry listed companies, and finally, using the method of factor analysis and regression,analyzes the results performance of the listed companies in the information technology industry; Fifth, conclusions and recommendations on the interpretation and analysis of the empirical results for the equity incentive problems in implementation process, the then put forward several feasible suggestions.