Empirical Study Of China’s Listed Companies Equity Incentive Effect On Corporate Performance

With the separation of the modern enterprise scale and specialized division oflabor, ownership and management of a modern corporate governance structure is animportant feature. Owner commissioned professional managers engaged in businessmanagement activities. However, business owners and managers there are somecontradictions in the pursuit of maximizing their own interests in the process, Thepursuit of business is to maximize shareholder wealth, while the operator is in pursuitof low-risk, high pay, working time and leisure spending. As a modern enterpriseequity incentive an important incentive, by granting partial equity managers to enablethem to participate in corporate decision-making capacity as shareholders, to takerisks, share the profits. The enterprise managers personal interests and the overallinterests of the enterprise effectively together, reducing agency costs, and improve thecorporate governance structure, improve the performance level of the enterprise.In this paper, incentive stock options exercise price of stock options validimpact on the corporate performance. Help us understand whether equity incentiveshelp to improve corporate performance, analysis of the implementation of equityincentive problems in the process, for the design and implementation of China’s listedcorporations to provide equity-related incentive measures and suggestions for moreeffective implementation and promotion of equity incentive program provides acertain significance.Firstly, the theoretical analysis, introduces the theory of equityincentive and corporate performance, and then the impact on firm performanceincentive equity of listed corporations empirical research. Shanghai and Shenzhenlisted corporations selected data for the years2011--2013sample, select the revenuegrowth for the dependent variable, the exercise price of incentive stock options andincentive is valid for explanatory variables, asset-liability ratio, company size, ROE,ROE growth rate of the control variables, based on the theoretical analysis presentedthree assumptions, and variable model was constructed, using SPSS19.0statisticalanalysis software for descriptive analysis, correlation and regression analysis to verifythe validity and correctness of the model assumptions. Through empirical analysis the following conclusions: equity incentive andcorporate performance has a significant relationship, Stock option exercise price and apositive correlation between corporate performance, Incentive is valid and corporateperformance negatively correlated. The last article for the empirical research findings,analysis of equity incentive problems in the process, respectively governance andpolicy recommendations from the external market environment within the enterprise.