Our Country Listed Company Equity Incentive Relations With The Earings Management Theory And Empirical Research

Biggest success and innovation of modern company system is to realize the separation of ownership and management rights,but with the deepening of the two rights separation,contradictions and problems of asymmetric information has plagued the owners of the company.As the owner of the client come to realize that as agent for the business managers need to restraint and incentive combination,equity incentive mechanism began to use the company’s daily operation and management,and equity incentive mechanism is produced positive effect.But not a kind of system is invariable, the advantages of any system is produced in the context of a specific environment and plays a role,equity incentive mechanism is no exception.A series of the introduction of equity incentive mechanism of company financial scandal exposure caused people’s reflection,although we can’t take the exposure of accounting scandals are attributed to the introduction of the mechanism of equity incentive plan,but the equity incentive mechanism design is not reasonable to blame.The introduction of equity incentive mechanism in our country time is shorter,and the shortage of the related aspects system in China,the company’s management in order to meet their expectations for the interests of the equity incentive plan,management of the company’s surplus phenomenon is serious. Introduction of equity incentive mechanism for the company’s surplus will impact in the end, if an impact,what is through the impact of factors such as the problem is a focus in the study of this article.This paper first illustrates the selected topic background and research significance. Then,summarizes the domestic and foreign research on the relation between equity incentives and earnings management studies,scholars at home and abroad about the conclusion from the relationship between the two did not achieve a high degree of unity,and most of scholars in the study from the Angle of incentive intensity only when two relations,comprehensive and in-depth degrees are not enough,so in this paper,absorbing the domestic and foreign research results,based on the equity incentive plan scheme design,from the incentive intensity,the incentive model and performance index of three point of theory and empirical study on the relationship between the two.Then the article on the equity incentives and earnings management are reviewed respectively,and expounds the relation between the analysis of theoretical basis,under the support of theoretical foundation has carried on the theoretical analysis on the relationship between the two.In empirical research part, this paper selected the five years 2010-2014 Shanghai,deep in the two cities A shares into the data of listed companies of equity incentive mechanism,the empirical results show that the presented three hypotheses,and other conditions in the same situation, the introduction of equity incentive mechanism in listed companies,equity incentive intensity and the degree of earnings management has significantly positive correlation, the degree of earnings management of restricted stock mode than stock options mode of surplus management degree is high,the higher the level of performance conditions in the equity incentive plan,surplus management level will be higher. Finally,in this paper,the theoretical and empirical research results are summarized and put forward some relevant Suggestions,hoping to provide some reference for the introduction of equity incentive mechanism of company value.