Research On The Reason Of Equity Incentive' Welfare Tendency

The incentive scheme has been introduced into our country since 2006, and the conclusion of the effects of equity icentive is still uncertain. Some previews studies showed that the equity incentive scheme could destory corporate management, and the other assume the welfare tendency of equity incentive scheme can alleviate the interest conflict between the manager and the owners. The main purpose of this paper is to find out the reason of the welfare tendency of equity incentive scheme.The primary coverage of this paper is to make a analysis on the realationship between tunneling of large shareholder and the welfare tendency of equity incentive scheme, and make an empirical analysis to test the hypothesis.The basic idea of this paper is as follows: in the first chapter,we make a summary of recent literature from the point of tunneling and equity incentive scheme. Then,describe the status of tunneling and equity incentive scheme in the listed corporation. In the third part of this paper, we make a ananlysis on tunneling and the welfare tendency of equity incentive scheme. In order to test the hypothesis, we made an empirical analysis between tunnelling and the welfare tendency of equity incentive scheme in the forth part. In the last part, we got the basic research conclusion according to the empirical analysis and provided some useful suggestion.Through the above empirical study we can get the following conclusion: tunnelling of large shareholder and the welfare tendency of equity incentive scheme showed close negative correlations relationship, and equity incentive scheme become an passage way of interestl transaction between large shareowner and senior executive in some way.