Empirical Study Of Effects Of The Major Shareholders On The Equity Incentive

The incentive system has been introduced into our country not for a long time, but the number of listing corporation has been increasing sharply. However, there was no certain conclusion on the effect of incentive system. Some studies suggested that the incentive system can encourage the management, but the others assume the incentive system nearly becoming a tool of self-interest of the management. And the unique ownership structure brings unique influence on corporate governance structure. This unique corporate governance structure will affect the implementation of the effect of the equity incentive system. But how the unique corporate governance structure influence the effect of the stock incentive system is still unknown. The main purpose of this paper is to demonstrate the effect of the large shareholder’s control on the effect of the equity incentive system.The main content of this paper is to study the effect of the c large shareholders on the equity incentive system. In the first part of this paper, we analyzes the mechanism and the possible influence of the large shareholder. Besides we also made a summary of the past studies. In addition, this paper also makes use of the data of the listing corporation in China to examine the impact of the large shareholder’s control on the equity incentive system. The main body of this paper is the research motivation, and the use of literature review to summarize the research results of the problem. In the second part, the paper analyzes the current situation of the stock incentive system in China. In the last part, we analyze the effect of large shareholder’s control on the incentive effect.Through empirical analysis, this paper mainly draws the following conclusions: the control of large shareholder has an impact on the equity incentive effect, and the impact of this kind of influence is influenced by the nature of the company. In the state-owned enterprise, the major shareholders have an positive effect on the incentive system. However the,the effect of major shareholders of the private enterprise on the incentive system is determained by the its’ stake.