A Study On The Relationship Between The Equity Incentive And The Corporate Performance In The Listed Companies In China

The separation of the ownership and management of a company is an important feature of the modern enterprise system, however, the separation of the owner and operator brings the agency relationship between shareholders and managers, in order to reduce the agency cost, improving the incentive for management; inevitably, it comes to the equity incentive related problem. Different from western developed countries, as for our country big environment, there are many barriers for the implementation of equity incentive plan. Under the condition of the existing economic system, the equity incentive plans of the listed company in our country have a lot of loopholes. How to perfect the equity incentive plan of the listed company in our country, solving the problem of the deficiency of the equity incentive reasonably, which is the point we focused on. But the equity incentive is questioned continuously in promoting development of listed companies, so the research on the listed company equity incentive mechanism not only has important theoretical significance, making the equity incentive of the listed company in our country more mature and perfect, but also has great practical application value, largely promoting the performance and value of the listed company in our country.In this paper, based on domestic and international numerous literature about equity incentive, also based on the research result of researchers before, this paper expounds the mechanism of equity incentive, and explain all kinds of equity incentive model, in the mean time, the paper analyses the present situation of the equity incentive of the listed companies in our country, and introduces the related case to further explain the incentive modes. On the basis of the theoretical analysis, the paper select the right research variables and establishes six empirical models so as to carry on the empirical research on the relationship between the equity incentive and corporate performance. The paper proposes four hypotheses; take the listed companies during 2012 to 2013 which implement equity incentive as the empirical research sample. It return on equity and tobin Q value is being explained variable, proportion of equity incentive, equity incentive model, the validity of equity incentive as explanatory variables, the company size, asset-liability ratio and main business growth rate as control variable, the empirical analysis by SPSS17.0. The research conclusions are as follows: 1) the implementation of equity incentive has a positive effect on corporate performance in the listed companies, but due to factors such as the immature capital market in China, this effect is not that obvious;2)there exists a positive correlation between the intensity of the equity incentive and the corporate performance in listed company;3) As for restricted stock and stock options, equity incentive model, of the two, the incentive effect of the former is better than the latter.4)The validity of the equity incentive of the listed company and the incentive effect is positive correlated. Based on the research conclusion and all the analysis, the paper puts forward some countermeasures and suggestions for the perfection of the equity incentive of the listed companies in china.