Empirical Research On The Listed Company Equity Incentive And Corporate Performance Relationship

Equity incentive is quotations from foreign method of corporate governance in our country, it can effectively reduce the agency cost of the enterprise, can make the operator to the identity of the shareholders in the enterprise’s profit distribution, at the same time undertake corresponding risks, which can motivate managers to improve management efficiency, eventually improve the company’s operating performance. In the1980s equity incentive effectively promoted the development of the economy, in the western mature market, by numerous scholars as equity incentive system can effectively solve the modern corporate governance in the field of the main channel of principal-agent relationship.In our country, the listed company equity incentive system is still in the research and exploration stage, with the improvement of China’s capital market and enterprise system, theoretical circle and practice circle pay more and more attention to equity incentive. Plenty of researches on equity incentive have been made all over our nation, but the relationship between equity incentive and company performance did not reach a unified conclusion.With the completion of the stock share reform, China’s capital market has greatly improved, this article is based on the new system and the background that capital markets to achieve full circulation the implementation of equity incentive will enhance or don’t the performance of listed companies is more meaningful.First, this paper expounds the background on the implementation of equity incentive,and summarizes the domestic and foreign research conclusion, secondly, this paper elaborates the meaning of equity incentive, this paper introduces the features of different patterns,equity incentive is how to influence company performance and introduces the present situation; third, four hypotheses are proposed according to the analysis of the above, and select the completed shareholding reform after the implementation of equity incentive of listed companies as samples, select variables and model, to lay the foundation for later; Finally, using the statistical analysis method to verify this four hypotheses respectively, come to the conclusion and puts forward related suggestionsThis article main research conclusion is:(1)although the implementation of equity incentive promoted the corporate performance,but the extent was a bit weak,the effect was not obvious;(2) equity incentive ratio were positively correlated with corporate performance;(3) the restricted stock incentive effect is better than stock options;(4) the longer the validity of equity incentive, incentive effect is better.