The Influence Of Executive Stock Ownership Incentive On Corporate Performance In Listing Corporation

Whether in China or in the western capitalist countries, corporate governance issues are the hot spots of theoretical research, the root of which lies in the separation of business rights and ownership under the current enterprise system. Under the principal- agent relationship, the shareholders employ professional managers to replace their own management company, however, due to the interests of the two sides of the pursuit of differences, there are difficult to reconcile the conflict of interest, thus causing mistrust between shareholders and company executives, buck passing, resulting in low production efficiency of enterprises and management lack of enthusiasm, firm performance over the long term growth consequences. In order to avoid this phenomenon, the western countries took the lead of executives of equity incentive, so that the executives of the private interests and the interests of shareholders "bundling" together, to overcome the short-term management of heart, to ensure that the company’s long-term stable development. In our country, although on equity incentive research started late, but with China’s capital market matures, the implementation of equity incentive of listed company quantity also is increasing year by year, especially in recent years, many companies announced their equity incentive plan, to executives of equity incentive to replace the traditional compensation system.The development of equity incentive in China has entered “a golden period”.In this paper, the HISEN-SEELECTRIC CO,LTD appliances as the research object, first elaborated the equity incentive related connotation and the three theoretical basis-- the principal-agent theory, human capital theory and the two factors theory. Then it makes a detailed exposition of the meaning of corporate performance and the meaning of performance management, and the influence of the executive stock incentive on the company. And then briefly introduces the Chinese listed company equity incentive system in the course of development and from the number of companies in the implementation of equity incentive, the implementation of equity incentive and industry analysis, make description of the current situation ofthe listed company’s equity incentive. At last, the detailed case study of Qingdao HISEN-SEELECTRIC CO,LTD appliance released equity incentive plan: first,introduce the HISEN-SEELECTRIC CO,LTD equity incentive background, then compare the implementation of equity incentive corporate performance before and after the change, the HISEN-SEELECTRIC CO,LTD equity incentive case to make the evaluation, and puts forward the need to face up to the problems and suggestions for improvement.