Research On The Impact Of Equity Incentives To Listed Company Performance Of GEM

Equity incentive is one of the tools to ease the principal-agent problem in the corporate governance structure, which is through some kind of long-term institutional arrangements and grant a certain form of ownership to the incentive object, then make them obtain the residual claim of the company, so as to coordinate the interests of the company's agent and owner. Since the listing of GEM in China, equity incentive is increasingly valued, and the GEM is the most active plate in the implementation of equity incentive in China. Equity incentive in the GEM companies plays an incentive to create value and make the positive impact on the company's performance, but there are also some companies have a poor performance or even a worse situation in the implementation of equity incentive, so there is a big controversy about whether the equity incentive is real or not to improve the performance of the GEM Listing Corporation. Therefore, the study of the equity incentive and its contractual elements of the GEM Listing Corporation performance has a strong practical guidance.This thesis followed the theory, current situation, demonstration and suggestion, which started from the concept of equity incentive, then according to the status quo of equity incentive in the listing corporation of the GEM, a series of problems existed in the incentive contract elements. To solve the problem, I began the empirical research on how to improve the corporate performance and how the incentive contract elements affect the corporate performance.Through multiple regression analysis and grouping statistical test, the result shows that equity incentive significantly improved the company performance the GEM Listing Corporation, but the amount of incentive is not significant for the performance. Because the welfare incentive scheme in companies, such as amount of large and loose performance conditions, seriously affected the implementation of the equity incentive in the board of the listing corporation. In addition, it was found that after the implementation of the incentive, although a company with a longer incentive duration gained greater performance improvement, there are obvious earnings management issues, and the real improvement of corporate performance is questionable. Moreover, it showed that mixed mode was better than single mode for the influence of incentive mode on company performance, and stock option is superior to restricted stock in the single mode.According to the research, this thesis argues that the implementation of the equity incentive in the GEM Listing Corporation should be based on improving the governance environment of the GEM Listing Corporation, formulating the equity incentive contract rationally and strengthening the supervision and restraint of equity incentive, and the relevant suggestions are put forward according to the practice.