Equity Investment And Equity Incentive Mechanism Of Entrepreneurial Enterprises

As for the equity investment, investing is only the beginning of the relationship with theenterprise, management business after the investing is the most important. Supervisory control isone of the two elements of the management business, which include the design of incentivesmechanism. As for the enterprise, short-term incentives and long-term incentives make up theincentives mechanism; the former cannot encourage the incentive target to face the company’sfuture. Therefore, the long-term incentive equity incentive mechanism design becomesparticularly important.Based on the above, this paper studies whether the equity investment bring new features todesign of long-term incentive-equity incentive mechanism of the portfolio companies involved.Through theoretical analysis and empirical regression analysis, we draw the followingconclusions: firstly, equity investment enterprises involved tend to layout the higher the intensityof equity incentives, the number of equity incentive objects were significantly higher than thenumber of non-equity investment enterprises involved; secondly, equity incentive and corporateperformance intensity showed a significant positive correlation, the more the number of objectsthe better incentive business performance. Conclusions indeed prove the involvement of equityinvestment bringing new features to the enterprise equity incentive mechanism design, and thisnew feature can effectively promote enterprise performance improvement. The conclusion canprovide theoretical guidance for the practice of the management business. Through empiricalresearch we get some new conclusions and a little progress, but because of the difficult incollecting and collating data, the data used may be not mature enough, this is the future researchdirection for improvement.