The Relationship Between Equity Incentive And Firm Performance

In recent years,China has been vigorously promoting the reform of the financial system and mechanism,with the successive introduction of a series of securities laws and regulations and supporting policies,China's securities market environment continues to be optimized,and gradually improve the system of laws and regulations,supervision mechanism is increasingly mature,listed companies has the necessary market and legal basis to implement equity incentive.At the same time,China's professional managers market is gradually mature,all professions and trades are hire professional managers to carry out professional management and enhance the company's performance,but there are also different levels of principal-agent problem.Therefore,more and more listed companies pay more attention to equity incentive mechanism,the number of listed companies that implement equity incentive is increasing year by year,but the incentive effect is different.The purpose of this paper is to study the relationship between equity incentive and corporate performance of Listed Companies in China's TMT industry,in order to provide some guidance for the improvement of equity incentive effect of Listed Companies in China's TMT industry.This paper takes 2010-2014 as the research period,the stock market listed companies in the Shenzhen Stock Exchange as the sample,the return on net assets as the dependent variable which is adjusted,the incentive intensity as the independent variable,the incentive mood as the moderator variable,and five factors which include firm size,asset liability ratio,firm growth,ownership concentration and equity balance as the control variables.The sample data is mainly from Wind,CSMAR and cninfo net information disclosure.The research ideas of this paper are as follows:(1)By paired sample statistical analysis and nonparametric test to difference of performance mean,to verify whether the equity incentive of Listed Companies in TMT industry has a significant impact on Corporate Performance.(2)By constructing the empirical model for regression analysis,to verify whether the incentive intensity of Listed Companies in TMT industry in China and the performance of the company existence a "inverted U" type of nonlinear correlation.Then compared the regression results with non TMT listed companies,which implemented equity incentive in the same period.(3)Through the regression analysis of the interaction between incentive intensity and incentive methods,to verify whether the incentive mode has a significant moderating effect on the equity incentive effect.At the same time,because the incentive mode is a dichotomic variable,the samples were further divided into the stock option group and the restricted stock group and carried out regression analysis,to find out which incentives mood are better.(4)To verify whether the conclusion of this paper is robust by replacing the measurement of dependent variable.The paper draws the following conclusions:(1)TMT industry listed companies implements equity incentive has a significant positive effect on corporate performance;(2)The equity incentive intensity of listed companies and company performance existence a "inverted U" type of nonlinear correlation in TMT industry;(3)There are obvious differences in the impact of the equity incentive on the performance of listed companies in the TMT industry and non TMT industry;(4)The incentive effect of using stock options is better than restricted stock in TMT industry.The innovation points of this paper is as follows:(1)Take the incentive intensity as the independent variable,rather than the proportion of managerial ownership,which disclosed by the listed company in the equity incentive plan;(2)Take a comparative study of the TMT industry and the non TMT industry,and proved that the industry has an important influence on the incentive effect;(3)Verified the moderating effect of incentive mode,and concluded that the incentive effect of stock option is better than that of restricted stock.