Research On The Impact Of Equity Incentives To Listed Company Performance:Empirical Evidence

The focus on issue of our corporate governance always pays close attention to principal-agent problem.That solving and parting of the right of dominating and possessing. The capital market of our country is young. A commitment mechanism to competitiveness has not entirely built. So the company can only solve the problem of principal-agent with adopting to building internal governance mechanism methods. Here, share incentive mechanism came to solve conflict between with shareholders and managers. Share incentive mechanism is one of availabilities’internal governance mechanism of company’s is good for our company internal governors when we combine interests of governors and shareholders.It is very important meaning to improve internal governor. Stockholders rights drive has been put into effect that staff and workers get some stocks to be one of the shareholders of the company. The way of encouragement is different from entity payments.That is good for some company to attract talents and keep talents and encourage talents.And the company will get advantage of the talents. So far, with drawing experiences of foreign countries, building equity incentives. It can anxious to cushion the blow of agency conflicts.Since equity incentive thriving, many western and domestic experts begin to the research of effection of equity incentive. It consists of standardization research and empirical research. But because the company choose different dimensions of measures, capacity problems of sample data, leading to inconsistent conclusions, but the conclusions of both studies. However, a lot of experts believe that putting equity incentive into effect has matter to corporate performance. Under environment of the our market, equity incentive just get a beginning that which is young coppering with western market. So far, our experts do researches with regard to equity incentive under the background of western experts’. Under these circumstances, it is fitting for our companies market to carrying equity incentive out or not. It is good to help companies to govern when carrying equity incentive out or mot. It requires to uses our companies financial dates to static and analyze. Which can give good advices to give decision-making reference companies who will do the desive of managing?Meanwhile, due to the split share reform later start time, resulting in our equity. Our experts study the effect of equity incentive, only just as Equity incentive mechanism with one. When they study the relationship between equity incentive and companies performance. Research on the model of stock ownership is only limited to the technical DBel of equity incentive model and the existing obstacles and corresponding measures. The need to reform the incentive mechanism, the lack of experience in the listed company’s equity incentive, on the equity incentive model is not perfect choice laws and regulations, etc., so that domestic listed companies in the decision to implement the equity incentive plan, the choice of the specific mode indecisive. This requires more scholars studying different models implemented equity incentive effect.Based on sorting out and running the studying of the past through financial data of both equity incentives theoretical knowledge. Based on year 2012 to 2006 in Shanghai and Shenzhen company annual reports. We use Chinese A-share companies to equity incentive plans motherboard advanced copy. In the text, I use crossrange and longitudinal direction together to compare. Using independent samples T-test and paired samples T-test method. I use the data to check equity incentive to affect companies’achievement. Meanwhile, through the establishment of three on corporate performance and equity incentive model regression model, with stata to deal with dates. Examine the solid evidence relationship between the different main kinds of equity, which incentive the stock-MOD and the restricted-stock both with corporate performance. Through a series of studies found that:(1) the implementation of equity incentive plan performance of listed companies is better than the overall performance of listed companies. But the effect of them is not striking. (2)Put equity incentive can help companies to develop, which equity incentive has good connections with companies implementation. (3)The intensity of the equity incentive can obviously help companies to develop, that companies performance will enhance by a large margin when a company actualize the equity incentive vigorously. (4) the effect of stock MODs than restricted stock model, but the differences were not evident effect modes.My research paper’s framework is that chapter one introduces my study context, study objective and study sense. Second chapter is the theoretical basis of the analysis and literature review section introduces the concepts and theories, that to laying foundations to the following expounding. The third chapter is mostly to give the main pager scheme. Including the proposed hypothesis of this paper, the definition of the reDBant variables and build multiple linear regression model. Fourth chapter is the empirical results and discuss section. In this part, I try to using different kinds of measures to test the sample data. Last cheaper gives the judgment of the whole paper and give some Recommendations.The main innovation of this study is that from the perspective of equity incentive model, the researchers listed companies implement incentive effect, using a lot of DA methods to verify hypothesis with rational problem.