Study On The Effects Of Equity Incentive In Managerial Level Of Listed Companies

The academia and the business community begin to pay great attention to equity incentive since this concept has been proposed. With the development of economy and the improvement of equity incentive mechanism, more and more listed companies choose equity incentive as its management long-term incentive.Current study mainly put all the companies to study the equity incentive effect,However,the enterprise also has the life cycle,in the different stage,the enterprises have the different corporate sttategy,different financial situation and the problem between the owners and the agents is different.Therefore, this thesis studies the equity incentive effect from on the perspective of the life cycle, will heip to judge the equity incentive effect..The study is based on the equity incentive theory and the life cycle theory, by using the classification of the industry growth rate,116 listed companies are divided into three kind of experimental group:growth、maturity and decline, then, according to certain standards, every example in each experimental group is matched, in order to test the hypothesis:the effect of the listed companies in various stages of the life cycle which implement equity incentive are significant compared to those who don’t implement equity incentive and the effects of equity are different in different stage of enterprise life cycle. In the stage of growth, economic value added and the growth rate of income are selected as performance index. In the stage of mature, market value added and cost profit rate are selected as performance index. In the stage of recession, the net capital gains rate and new products R&D ratio are selected as performance index. This thesis carries a descriptive statistical analysis, T test and regression analysis. The conclusions are as follows.The effects of equity incentives are significant in growth and mature stage but insignificant in recession stage. Compare the effects of equity incentives in different stage of enterprise’s life cycle, the effects in growth is the most, followed by the maturity, recession last. Finally, this thesis points out the article innovative points、the limitations of this study and give several suggestions about the further study.