The Relationship Between Equity Structure,Executive Equity Incentive And Corporate Performance

Small and medium-size Enterprise Stock Market is a market for mature small and medium enterprises.May 2004,approved by the State Council,the China Securities Regulatory Commission approved the Shenzhen Stock Exchange set up SME plate in the main board market,thus providing a good opportunity for the development of the small growth enterprises which surviving from start-up phase.Ownership structure as an important part of the capital structure of listed companies,affects the company's governance mainly through equity concentration,equity balance and equity attributes and thus affects the company's performance.Giving a reasonable equity incentive to the manager of the company helps to link the interests of the owner to the interests of the operator,thereby improving the performance of the firm.In view of the small board listed companies have their own unique in many aspects,this paper,tests the influence of the stock ownership structure and the executive equity incentive on the performance of the firm from the aspects of the ownership concentration,equity balance and equity attributes,the proportion of executives holding,based on theoretical analysis and the status of small and medium-sized board equity and performance status.This empirical analysis selected 2011-2015 China's small board listed companies as a sample of the data.The results show that there is a significant positive correlation between equity concentration,equity balance,state-owned shares and SME performance,and the proportion of executive holdings also has a significant positive impact on SME performance.At the end of the paper,four recommendations for the development of small and medium-sized enterprises are listed: To ensure a certain concentration of ownership while strengthening equity checks and balances;improving the credit system of small and medium enterprises and broadening the financing channels for them;To give appropriate equity incentives to the company's executives;Appropriate expansion of the company size.