Equity Incentive,Concentration Degree And Corporate Performance

Equity incentive has been widely used in western developed countries which is an effective way to solve the principal-agent problem and reduce agency costs. Moderate ownership concentration degree can reduce the agency cost, incent and restrain managers effectively. Compared with foreign countries, the application of equity incentive system in our country starts late, but develops rapidly. Differently from the characteristics of ownership dispersion of foreign companies, the equity concentration degree of listing Corporation in China is higher. So, considering the characteristics of higher equity concentration degree of China’s listing Corporation, how is the impact of equity incentive on the corporate performance? Based on this point as the starting point, this paper deeply studies the intrinsic relationship among the equity incentive, the concentration degree and the performance of A shares listing Corporation in China. Specifically, this article includes five major components:First of all, this paper introduces the background and significance of this study, research methods and content, and defines the relevant concepts.Secondly, this paper introduces the relevant research theories and results at home and abroad.Thirdly, this paper summarizes the theoretical basis of this study, including the principal-agent theory, human capital theory, incentive theory, hypothesis of interest synergistic effect and entrenchment effect etc..Fourthly, this paper conducts an empirical study taking related data of A share listing corporation in China from 2010 to 2014, constructs the linear regression model of the relationship among equity incentive、equity concentration degree and corporate performance, conducts descriptive statistical analysis-, independent-samples t test and multiple linear regression analysis on the related variables of equity incentive 、 equity concentration degree and corporate performance of listing corporation, and studies the specific reasons for the regression results.Fifthly, this paper puts forward the concrete countermeasures and suggestions to improve the equity incentive mechanism, to maintain a moderate degree of ownership concentration, and to improve the corporate performance according to the results of empirical regression.