Analysis On The Applicability Of Equity Incentive Mode Of Listed Companies In China

At present, our country has entered a new normal economy. Influenced by internal and external factors, economic development faces many challenges. As the main body of the market, enterprises are the main force to promote the steady growth of China’s economy. The development of enterprises can not be separated from the evaluation of the performance. With the maturity of China’s securities market, more and more enterprises choose the equity incentive as an important means to improve the performance of the business, Especially in the era of economic globalization, the domestic enterprises pay more and more attention to the exotic equity incentivethis.At the same time, the relevant laws and regulations are gradually improved. Under the new background, how to choose the right mode of stock ownership to become the concern of the enterprise.Based on the domestic and foreign literature on the implementation of equity incentive mode and the results, this paper puts forward the research topic. This paper expounds the relationship between stock ownership incentive and enterprise performance, as well as the applicability of different equity incentive model, and draws some conclusions.The paper analyzes the current situation of the implementation of equity incentive in our country, and puts forward the research ideas. Second, explain the relevant theory and put forward three hypotheses based on the analysis of the previous paper. Third, select the Shanghai and Shenzhen main board and GEM as the sample, select the variables and establish the model, conduct empirical research. Finally, draw the conclusion and put forward some suggestions. Put forward the limitation of this paper and the author’s expectation.The significance of this paper is to discuss the effect of the implementation of equity incentive from the empirical point of view. discussed the applicability of different equity incentive models, and analyzed the effect of the model selection on the performance. The conclusion of This paper are:(1) the implementation of equity incentive plan for the main board and the gem in the Shanghai and Shenzhen stock markets is helpful to improve the performance of the enterprise. (2) for a more mature board business, the effect of restricted stock is better than the stock option. (3) for the growth of the GEM companies, the effect of the option is better than the stock.