An Empirical Research On Growth,Executive Equity Incentive And Long-Term Investment

The General Secretary Xi Jinping put forward the concept of supply side reform in the Central Finance Leading Group at the eleventh meeting.The ultimate goal of the reform is to vigorously stimulate the vitality of micro-economic entities,and enhance Chinese long-term stable economic development.Long-term development of the economy depends on the development of enterprises.So,how to improve the long-term development of new impetus to enterprises,and how to encourage enterprises to process the long-term investment is what we are focus on.In 2017,in order to enhance the determination of taking off a virtual to physical,in our country "two sessions",to revitalize the manufacturing industry as the core of the real economy is one of the most concern of the delegates.So,in this context,this paper chooses government-supported manufacturing data to study the relationship of growth,executive equity incentives and long-term investment.The article is based on the sample of A-share manufacturing listed companies during the period of 2011-2015.On the growth and executive equity incentive how to influence long-term investment for theoretical analysis and empirical testing.Based on the principal-agent theory,the incentive theory and the enterprise's life-cycle theory,the research hypothesis is put forward and the regression model is established.Long-term investment is explained variables,growth and executive equity incentive levels are the explanatory variables,the free cash flow,the earnings per share is the control variable,the year is the dummy variable.To study the relationship of growth,executive equity incentive and long-term investment.Statistical analysis found that:(1)the largest data from the computer,communication and other electronic equipment manufacturing industry in the total sample,there are 339 samples.The second highest is the chemical raw materials and chemical products manufacturing,there are 260 samples.(2)The maximum value of the growth index is 0.6037,the minimum value is-0.2316,the maximum value of the executive share is 0.5612,the minimum is 0.000014,the maximum value of the long-term investment is 1.5458,the minimum is-0.0975,The difference between the maximum value and the minimum value of the indicators is relatively large,indicating that growth,executive equity incentive and long-term investment level differences between different companies.(3)After observing the general trend of the growth,the executive equity incentive and the long-term investment level.It is found that the trend of the average change between the three is generally consistent.It reflects that some correlation between the three indexes.The regression results show that:long-term investment is explained variables,growth and executive equity incentive levels are the explanatory variables,the growth and executive equity incentive levels are positively correlated with long-term investments,which shows that the enterprises with higher growth tend to invest in long-term business,executives of the equity incentive are conducive to promoting the long-term investment level.To sum up,in China's A-share manufacturing listed companies,the better growth of the company more inclined to the company's long-term investment.equity incentives for executives can also improve the company's long-term investment level.Therefore,if the relationship of the three can be coordinated properly,it can promote the company's long-term and stable development,so as to promote China's overall economic long-term,healthy development.