Equity Incentive Performance Research About Strategic Emerging Industries

Strategic emerging industry represents the comprehensive strength of a country,It plays key role in the economic development of our country,Therefore, the expanding of emerging industry has been widely attention in China. In recent years,in order to promote the expanding of strategic new industries, China's central government developed a lot of planning for the growth of new strategic industries,and planning the seven emerging industries. Under the support of relevant policies Strategic emerging industries has been booming growth.The production of equity incentive comes from the principal-agent problem.Bottom in the early 1950 s, the long-term incentive equity incentive mechanism in the United States was born, and the implementation of equity incentive measures did brought benefits for the enterprise, then also has a lot of countries to follow the United States into waves of equity incentive, but the development of incentive mechanism is relatively slow in our country. In recent years, the capital market gradual perfection in our country, more and more listed company tried to take equity incentive. In such a condition, the research of strategic emerging industry company equity incentive and corporate performance relation is necessary.Firstly, this article compared the corporate performance between before the equity incentive and after the equity incentive. Considering capital market is not completely in our country, to measure the company's results, didn't use Tobin Q value indicator which foreign often use, such as instead return on net assets yield and per-share earnings, Comparison show that after the implementation of stock-based incentive, company's results have great improved, Illustrate the equity incentive helps to improve company performance, to return to the regression equation, it showed that there is a non-linear relationship between the stock-based incentive and company performance.Secondly, this paper studies the incentive effects about different proportion on corporate performance. In this paper, Accord to the size of the encourage proportionof sample company, the sample fall into two parts. The companies incentive ratio under 3% as samples 1, the companies motivating ratio greater than 3% as sample 2.After return to the two samples, it show that, When the proportion of equity incentive is under 3%, with the proportion of the equity incentive growing, there is an obvious positive correlation between the company earnings and proportion of the stock-based incentive. When equity incentive more than 3%, with the increase of equity incentive proportion, it show no significant negative correlation relationship between them.This shows that there is important relation between incentive proportion and effect of equity incentive, when enterprise take equity incentive, equity incentive proportion should be considered to better equity incentive effect.Finally, this paper studies the different incentive mode on company performance.Accord to different equity incentive mode, samples fall into two different parts, stock option incentive model company as sample 1, restricted stock incentive mode as sample 2, Comparative analysis of two kinds of incentive model,Results show that the equity incentive effect of restricted stock incentive model is better than the stock option incentive model.