The Research On Corporate Equity Incentive Effects In Small And Medium-Sized Plate

With the rapid development of medium enterprises and the gradual improvement of the capital market, more and more medium enterprises list in the Shenzhen Stock Exchange. In the modern separation of ownership and corporate governance, the company’s development depend on talent very much, in order to attract and retain qualified personnel, equity incentives is widely used by these company.Compare to the companies in motherboard board,these companies have their own characteristics,so it is necessary to research the corporate equity incentive effects in small and medium-sized Plate separately.It is helpful for medium enterprises to improve the equity incentive plans.Firstly, The paper describes the theory and results of previous studies about equity incentive, Secondly, from the aspects of industry distribution, the mode of equity incentive, incentive validity, incentive period, the author describe development status of equity incentive and point out the problems.Thirdly,in the empirical part, the paper selectes the company that declare and insist on the implementation of equity incentive plans in small plates in 2012 for the first time as sample,then from the aspect of capital market and business performance, the paper analyze the incentive effect of equity incentive plan.Next,the paper study the Short-term market effects of equity incentive using the method of Event study. Then use the method of test for paired samples to compare the company performance before and after the implement of equity incentive plan.in the last, on the basis of equity incentive can certainly improve the company ’s performance level, and further to use linear regression model to study the relationship beteween equity incentive and corporate performance.After empirical study, we draw the following conclusions: First, the equity incentive announcement brought a positive responseto the market in a short time the company’s stock price has a significant improvement and on the annoucement,it reach to the maximum, after several days,the impact gradually subside; second, the implementation of the company’s equity incentive policies lead to improve the level of performance; third, the level of equity incentive and corporate performance are related, but the relationship was not significant. Fourth, the incentive effect of restricted stock is better than stock options. Finally,on the basis of the listing status and empirical research findings of small and medium enterprise board, the paper bring out some guggestions: First, improve the capital markets, improve the effective performance of the capital markets; Second, optimizing the equity incentive plan; Third, the establishment of the company’s internal governance system...