The Study On The Equity Incentive And Corporate Performance Of State-owned Corporate In The Ethnic Minority Areas Of China

Equity incentives have long been used as a way for many enterprises to motivate employees,it plays an important role in enhancing corporate value and been widely used by national companies.Several theories hold that equity incentive can effectively coordinate the relationship between business operators and owners,and solve the problems of modern enterprise control to a certain extent.The mechanism aims to conduct long-term incentives for business managers,and ultimately achieve a win-win effect.However,because of the huge difference between China's capital market and the western countries,it makes the effect of domestic equity incentive on corporate governance become complicated,so it is very important to study the effect of equity incentive in different fields.During "13th Five-Year" period,since the implementation of the supply side reform,equity incentive system has drawing a great degree of attention,and is in good graces of plenty of listed companies in ethnic areas.Operators can obtain corporate equity through this way to participate in corporate governance.This paper will study the relationship between equity incentive and corporate performance of listed companies in ethnic areas in China.Based on the relevant theories and literature at home and abroad,this paper defines the relevant concepts of equity incentive,explains the meaning,features,working principle of equity incentives,analyses the function of equity incentive coordinating relationship between principal and agent interests,introduces the institutional foundation of the implementation of equity incentive in China,and reviews the development process of equity incentive before and after the reform of non-tradable shares.Through statistical methods to further analyze the current main models and the current situations of equity incentive in minority areas of China.This paper chooses the listed companies in minority areas of China as the research object between 2006 and 2015,and conduct empirical study on equity incentive and enterprise performance.By using principal component analysis,curve estimation and regression analysis in SPSS18.0,this paper study the relationship about shareholding ratio and corporate performance,we have following consequences:(1)Whether it is a state-owned enterprise or not,the performance of the listed companies in the ethnic minority areas with equity incentive is significantly better than that of the non-implemented companies.(2)By using the principal component analysis,it is found that the listed companies in minority regions are sensitive to the two indexes of asset-liability ratio and equity incentive plan.(3)With linear regression and curve regression,found that the proportion of managerial ownership of listed companies in the ethnic regions was linearly fitted with the performance of enterprises.At the same time,it was found that it also passed the test of curve fitting.According to the demonstration results,the proportion of management shareholding is positively correlated with firm performance.Therefore,improving the incentive system,adjusting the conditions of exercise appropriately,exploring new models actively,and constantly optimizing both the internal management structure and external supervision,will give full play to the advantages of equity incentives,and finally achieving the effect of improving the performance of state-owned companies in ethnic minority areas.