Research On The Influence Of Management Equity Incentive On Enterprise Performance Of Listed Companies

In the middle of 20 th century, equity incentive first bloomed in developed western countries. Being given stock, the management share surplus profit and take certain risks as shareholders, who combine improvement and management of an enterprise together, so the management could be inspired to work for the enterprise’s continuous growth. In our country, due to the effect of equity division reform and some restricts from capital market, laws and supporting policies, equity incentive was implemented in the 1990 s with a slow pace. Nowadays, it’s a beneficial period for equity incentive to be applied to listed companies with the equity division reform, the settlement of capital market criterion and the promulgation of relative regulations. Therefore, the paper explores the relationship between equity incentive for the management and enterprise performance under this background seemed to be important for optimizing the measures of management equity incentive and the growth of enterprise performance.This paper first starts with a literature review on the management equity incentive, the enterprise performance and the relationship between them, then prove there is a Positive correlation between management equity incentive and enterprise performance by analyzing basic theories of equity incentive and the theory of how equity incentive impact enterprise performance with the example of listed companies from A share stock manufacturing section which carried out the management equity incentive in practice. In the end, this paper offers some proposals for the progress of enterprises’ development and the optimization of our country’s management equity incentive system from both macro and micro point of view.