Research On The Relationship Between China’s Listed Companies Equity Incentive And Corporate Performance

As social and economic progress, the rapid development of modern corporateenterprises prompted the principal-agent relationship further deepening, it is also anecessity, because the principal-agent relationship of principal and agent ascontradictions in the relationship interests of both sides, both the pursuit of maximizingtheir own interests, the interests of these two conflicts, in two ways, on the one hand,agents tend to be the company’s surplus profits to invest in new projects, which isbound to make principal interests damaged; on the other hand, to achieve the goal ofmaximizing shareholder wealth clients, business behavior is bound to strengthen thecontrol agent, the client is unwilling to present their own interests to the agents to riskyinvestments, Therefore, in order to effectively reduce this contradiction problemscontinue to deepen, equity incentive emerged. Equity incentive in foreign maturecapital market has experienced sixty years of history test, but in China, due to a latestart, and the role of special social environment, development of the road of equityincentive is still unhealthy, there are a lot of problems, such as research on incentivestock options have not standardized on academics, not only in terms of variableselection problems, but also in the use of research methods，there are no small defects.Practitioners usually equity incentive plan design and operation is not unreasonablecompliance, specifically in the design solutions are similar,"follow the crowd" quiteserious, there is no need for the system should be operating in accordance with theirown characteristics and development specific details of the program was designed, andequity incentive incentive model in the presence of a single practice, incentive validityis too short, generally low levels of incentives and other issues, the construction of thecompany’s internal supervision system is not very perfect time.Firstly, the research background of the equity incentive to do a detailedinterpretation, pointing out that the writing of this article is very necessary, not onlyhas theoretical significance, but also a profound analysis of the practical significance of incentive stock options. Then by domestic and foreign scholars of literature on theequity incentive lots of reading, review the theoretical expression of conclusions of thestudy, and the specific relationship between the equity incentive and corporateperformance between the two made a detailed Commentary. On this basis, the paper’shistory of equity incentive to do a detailed description, and made a detailed statisticalanalysis of the status of implementation of equity incentive period2006-2013, throughthe study compared to the large amounts of data and found there are many problems.Then through the elaboration of relevant classical theory, put forward two basicassumptions of this article.Before specific empirical analysis, this paper selected financial indicatorsseventeen factor analysis, the results obtained in this paper are interpreted as variables,which is an innovation point of this article; also select the level of equity incentive andequity incentive model as Empirical studies of the explanatory variables, and January1,2010to December31,2013has been clearly announced equity incentive embodimentShenzhen A-share listed companies empirical data as a sample article data base. Thenthe concrete application of descriptive analysis, correlation analysis, multiple linearregression analysis and independent T-test to study the relationship between the equityincentive and corporate performance, and thus draw conclusions of this study: equityincentive and corporate performance was no significant correlation; incentive effect ofstock options is higher than the incentive effects of restricted stock. This shows thatChina’s equity incentive there is still a big problem, there is a huge space fordevelopment. On this basis, this paper from the government, the market, and otheraspects of their own to the healthy development of equity incentive proposed afive-point proposal in detail.