Executive Equity Incentive,Risk-taking And Enterprise Performance

In today's rapid development of market economy,senior managements of enterprises grasping on the market trends will directly affect the future development of the enterprise.Executives grasping on the market environment mainly reflect on the attitude to risk of the market.If executives have a positive attitude towards risk,companies may use this opportunity to achieve business efficiency.But if the executives avoid some risk,the enterprises may lose the opportunity to gain benefits,thus affecting the development of enterprises.And how to motivate executives to carry out risk-taking behavior becomes a hot issue in theoretical research and practice in recent years.On the executive incentive mode selection,implementing equity incentive for executives is considered to be a more effective incentive mechanism.In the study of executive equity incentive,the literature on the correlation between equity incentive and firm performance is mostly,but few scholars have discussed how to encourage executives to improve the performance of enterprises from the perspective of corporate risk.Therefore,it is necessary to study the relationship among executive equity incentive,risk-taking and firm performance,and to analyze the role of risk in the relationship of three.This is paper is based on the review of the literature of related research at home and abroad,and regard the principal-agent theory as the basic theory,combining with the mechanism of incentive theory.Firstly,this paper proposed the hypothesis of the relationship among the executive equity incentive,risk-taking and corporate performance.Secondly,this paper is based on the data from the Chinese Shanghai and Shenzhen A-share listed companies between 2010 and 2014,and after data filtering,we get 5035 sample data.Using a panel regression analysis method,this study empirically investigates the relationship among managerial equity incentive,risk-taking and corporate performance.Through the research we found that: when the companys implement equity incentive for executives,the companys' performance will be improved;when executives get equity incentive,the risk-taking of the enterprises will be increased;The increase of the enterprises risk-taking will enhance the enterprise performance;risk-taking through the path of ?executive equity incentive-risk-taking-business performance? impacts on enterprise performance,risk-taking plays intermediary role in executive equity incentive and corporate performance.The robustness of the reliability of the test also proves the conclusion.Finally,on the basis of the research conclusion,we put forward the policy of perfecting our country listed company salary system,and the ideas of improving the equity incentive mechanism and corporate governance mechanism.