Research On Equity Incentive Performance Of Information Technology Industry Listed Corporations

As a product of the information age,information technology enterprise is developing rapidly.Internationally, the level of development of information technology is becoming a symbol of national scientific and technological strength. Compared with the traditional industries, IT industry has features of the fast replacement and innovative demanding. Therefore, human capital has become one of the core capital in IT companies. How to retain talent is a top priority for IT companies. Equity incentive not only can effectively motivate talented people, but can also give professionals more beautiful vision. Thus, equity incentive has become increasingly common in IT industry. As more and more enterprises equity incentives, whether it can really play to increase the effect of the interests of shareholders, rather than become a disguised welfare management. We need to accurately measure the effect of the implementation of incentive stock options, which is to explore the key issues in this article.This study focused on information technology companies which need the high labor costs. Therefore, paper selects listed companies in China’s information technology as a sample of this study. The first step in the study, I describe the background and significance of this research, describe the relevant literature; then the second step, I describe the theoretical basis for incentive stock options and equity incentive theory, combining the characteristics of the information technology industry, analysis the industry the necessity of the implementation of equity incentive; then the third step, I describe the introduction of DEA model as an evaluation indicator of equity incentive performance after the implementation, and describe the ideas and methods of empirical analysis; and finally the fourth step, through analyzing and comparing the model calculated by the DEA index, I give the comprehensive evaluation of IT listed company equity incentive effect. Finally, the study give the summarization and recommendations.This paper combines theoretical and empirical research methods and uses comparative research method in the evaluation of the implementation of equity incentive effect. Using DEA model, this paper analyzes the changes in the implementation of equity incentive of enterprise performance for horizontal and vertical comparison. Horizontal comparison means comparative analysis of non-implementation of equity incentive selected companies and imposing a similar sample of corporate equity incentive; vertical comparison means the analysis changes of business performance before and after the implementation of equity incentive.The main conclusions of this article are:First: In this paper, through the BCC model of DEA, I analysis the selected comparison group of non-implementation of equity incentive and imposing a comparison sample of businesses and found that the after incentive corporates’ DEA effective overall efficiency of the number of firms increase, while non-implemented equity incentive companies’ effective DEA significant reduction in the number of firms, a sharp drop from 5 to later. Viewed from a purely technical indicators subdivision efficiency and scale efficiency point of view can be seen, the implementation of equity incentive companies had exhibited stable upward trend, compared with the decline in corporate non-equity incentive form a larger contrast.Second: With Malmquist productivity index, this paper analyzes the changes in the operating efficiency of 17 equity incentive sample before and after the implementation of the business enterprise. In the two years before the implementation of equity incentive, the overall productivity index showed a substantial sample of enterprises negative growth rate of-13.9%. And after the implementation of equity incentive, the overall stabilization and recovery have increased. By observing secondary decomposition of Malmquist productivity index, technical efficiency indicators index and index of technological progress, we can be seen to improve the overall productivity index improved efficiency thanks to technology, but technology has improved efficiency stems from pure technical efficiency and scale efficiency rise. The pure technical efficiency is usually determined by factors such as enterprise management level, therefore, we believe that after the implementation of equity incentive management level has increased, making the pure technical efficiency driven by increased business efficiency indicators, so as to promote the development of IT enterprises. Although the effect of the implementation of equity incentive for individual companies is uneven, overall, the equity incentive of Chinese IT listed company has some positive effects.