Analysis Of Equity Incentive,Operating Performance And Capital Over-investment

Since the establishment of the Shanghai and Shenzhen Stock Exchange in 1990s,China's capital market has experienced a development process from scratch,from immature to mature.The number of listed companies has been increasing year by year,and the capital market has become more and more perfect.The internal control and governance structure of enterprises have been normalized,and the modern business management system has been basically formed.So,how to ensure the interests of investors,the efficient use of capital and the efficiency of investment?There are many points worthy of in-depth study,this paper is devoted to exploring the hot issues in the financial field.Based on the background of Shanghai and Shenzhen A shares,focusing on the core issue of investment efficiency,this paper analyzes the economic mechanism of investment efficiency from the perspective of corporate management and internal governance.It has certain theoretical significance to enrich the theory of investment efficiency.In 2006,China adopted the Equity Incentive Regulation on Listed Corporation,In the past,China's listed companies rarely implement equity incentive,mostly concentrated in the private listed companies.Therefore,the efficiency of equity incentive in Chinese companies in the past ten years needs to be proved by empirical analysis.This provides a reference for the implementation of equity incentive programs at the company level.It has some practical significance.Based on the principal-agent problem,this paper integrally uses of literature research method,theoretical analysis and empirical analysis method.The first step is to introduce the research background and significance,straighten out the research ideas and the method introduction.The second step is to review the literature on inefficient investment at home and abroad,which lays a solid theoretical foundation for the follow-up study.The third step analyzes the specific mechanism of incentive and performance indicators to the loss of investment efficiency,and puts forward 3 basic assumptions on the basis of the principles of finance.The fourth step selects 12144 observations out of 1518 samples during the period from 2007 to 2014,mainly uses the dynamic panel data model and the sequencing of Logit(Ologit)and sequencing probit(Oprobit)model to study the factors of two explanatory variables.The results show that,in China,the higher level equity incentive is at,the greater investment ratio adds.Well profitability could not only stimulate the growth of investment,but also create excessive investment.Besides,equity incentive of company can restrain over-investment and reduce investment efficiency loss by improving the performance of enterprise management.