The Research On The Influence Of The Equity Incentive On The Investment Behavior Of Software And Information Technology Industry

The earliest scholars to study the equity incentive are Taussig and Barke.In 1925,they analyzed the executive compensation and corporate performance of US companies and concluded that the equity incentive had little impact on the company's development and profitability.With the rapid development of productive forces and the increase of knowledge-intensive enterprises,the incentive effect of equity incentive has also been expanded with the dual utility of incentive and restraint.The research on equity incentive has also been paid by many scholars at home and abroad.At present,equity incentive is generally considered as a long-term incentive mechanism in foreign countries,the impact on the company's performance is scientific and effective.After the transformation of capital market structure in China,with the promulgation of a series of policies and methods,more and more enterprises began to implement equity incentive,so that equity incentive in our country to get important development.Because the effective degree of enterprise investment determines the profit level and development status of the enterprise,it is of great significance to explore the effect of equity incentive on the investment of the enterprise for analyzing the operating status and growth ability of the company.Since the implementation of equity incentive in China,the number of companies engaged in the implementation of equity incentive in the information technology industry has been increasing.As of December 31,2015,Shanghai and Shenzhen Exchanges have a total of 114 trades to implement the equity incentive plan.This paper studies and states from the background of the emergence and development of equity incentive,the theoretical basis of equity incentive,the implementation mode of equity incentive and the effect of equity incentive on investment in software and information technology industry.This paper summarizes the domestic and foreign literatures and summarizes the relevant theories,and provides theoretical support for the effectiveness of equity incentive implementation.This paper is based on empirical research,supplemented by normative research,and conducts a multiple regression analysis on the investment behavior of the listed companies that have implemented equity incentive in the industry from 2006 to 2015.This article divides the inefficient investment behavior of the enterprise into overinvestment and underinvestment.The results of qualitative and quantitative analysis show that there are overinvestment and underinvestment in the investment of software and information technology industry in China.Equity incentive has a significant effect on the underinvest and overinvestment.Besides,the proportion of enterprises with insufficient investment is higher than that of over-invested enterprises.The effect of equity incentive is affected by the internal governance structure and operating status of the company.Finally,on the basis of the research of this paper,this paper puts forward some suggestions on how to make the practice of equity incentive in our country more effective and summarizes the shortcomings of the current research and puts forward the future development direction.