Correlation Study On The Equity Incentive And Corporate Performance-Comparative Analysis Between State-owned Listed Companies And Private-controlled Listed Companies

Equity incentive policy has been widely used in western developed countries for decades and it has become an effective approach, which can reconcile the contradiction between the shareholders and professional managers. With the implementation of the equity division reform in 2005 and the release of related guidance documents in 2006, the listed companies in China have the basic guarantee of the economic environment and legal environment. What is more, the State Council and China Securities Regulatory Commission (CSRC) made different provisions based on the nature of the property rights. According to the above background, this paper used the standard research system and the empirical research system to analyze the theory and data respectively. Then, it analyzed the correlation between the degree of equity incentive and corporate performance based on the financial data provided by the WIND database after 2010.At the normative research part, firstly, there is the introduction, which mainly expounds the research motivation, the institution background, research approaches, writing methods, significance of the study and possible innovation points. Secondly, the related theories and literature review were carried out. Thirdly, there is the statistical description on the present situation in China. The investigation samples were separated by the five following angles:the nature of property right, industry, the subject matter, period of validity and the exercise ways. At the empirical study part, this paper analyzed the listed corporations which implied the policy from 2010 to 2012, and used their financial data from 2010 to 2014. It set the Return on Equity as the dependent variable and set the Equity Incentive Rate as the independent variable. At the same time, it also used the Company Size, Debts to Assets and Total Assets Turnover as the controlled variable. All the data used the SPSS to make analysis of variance, correlation and t-test.Eventually, the conclusions are:equity incentive level and corporate performance did have positive correlation, but there are some differences between the State-owned Listed Companies and the Private-controlled Listed Companies. More specifically, as for the state-owned listed Corporation, there is no significant positive correlation. At last, the study analyzed the causes and proposed some sound and effective proposals.