Research On The Impact Of The Dividend Equity Incentive Allocation Decisions Of Listed Companies

Increasing number of listed companies in China have opened equity incentive plan since the reform of split share structure, which is considered to be in such great benefits behind the good cooperation mode in modern corporate governance. However, inevitably there is a proxy problem of moral hazard. This article aims to give suggestions about incentive program of listed companies through researching the distribution change of decision-making company equity incentive program under the management of the company dividend of shares.Through literature research, theoretical research, comparative study of the status quo and a combination of case studies, this article studies the influence of the equity incentive plan implemented by China’s listed companies on the company’s dividend allocation decisions. Based on the theory and studies of previous academic research, after comparing the dividend distribution status of the overall status of listed companies, I found that the equity incentive dividend level of the companies which implemented equity incentive plan is higher. Through analyzing the equity incentive plan during the company’s dividend distribution decision of China Vanke Co., there came to a conclusion that the company introduced a share incentive scheme dividend allocation decisions will have a positive role in the promotion. There are three reasons about this:first, cash dividends can reduce the exercise price and capital employed; second, based on the dividend signaling theory, corporate dividend decisions will affect the company’s stock value. The cash dividend payment will rise in the stock price and exercise increased managers’income; third, the modem corporate equity incentive plans are single, which generally contain requirements on stock prices. Stock prices will directly decide the exercise of equity incentive plan, while managers have the ability to affect the company’s dividend distribution motivated decisions that affect the stock price.Finally, this paper put forward recommendations based on the above analysis of the actual situation, and the follow-up study presents prospects.