Research On The Effect Of Equity Incentives And Its Influencing Factors In Listed Companies

Under the modern enterprise system,the separation of management and ownership of properties leads to the formation of the principal-agent relationship between shareholders,producing the question of agency.Equity incentive based on principal-agent is important for long-term incentive mechanism,theoretically balancing the interests of managers and shareholders,arousing the enthusiasm of management,reducing agency cost,and making them pay more attention to the long-term development of the enterprise.This article selects the Kunming pharmaceuticals group for the case study object,the incentive effects and influencing factors were explored.First of all,through the review of related literature,this thesis sets up the framework of case study.Next,whether Kunming pharmaceuticals group after the implementation of equity incentive improve performance,reduce the agency cost as well as promote the management to pay attention to the role of the enterprise long-term development to evaluate its effect.Finally,this thesis chose three aspects,the main features,executives from the enterprise and internal governance mechanism,to analyze its impact on equity incentive effect.this thesis draw the following conclusion,the implementation of equity incentive play an important role in promoting the performance of listed companies,reducing the agency costs between management and shareholders as well as promoting the management pay more attention to the effect of the enterprise long-term interests.In addition,the incentive effect is influenced by various factors,to be specific,the enterprise's growth is higher,larger,executives age is relatively small,the corresponding incentive effect is obvious,and good internal corporate governance mechanism provides a good environment for development of the the equity incentive.