Equity Incentive And Corporate Achievement Correlation Of A-share Small Plates Listed Companies

In order to speed up the construction of multi-level capital market in China,approved by the State Council in 2004,China set up in the Shenzhen SME board stock market,the creation of the plate for some of the income of China’s fast growth,strong profitability,high technology content of small and medium-sized enterprises to enter the capital market,provides a platform to achieve equity financing.In recent years,with the establishment of modern enterprise system,the relationship of enterprise property rights and responsibilities clear gradually,the principal-agent relationship between the owner and the operator is becoming more and more obvious,while expanding the scale of the listed company has also increased the difficulty of management of enterprise management,how to reduce agency costs,promote the operator convergence with the interests of the company,gradually aroused the attention of domestic scholars.In early 1990 s,China began to introduce equity incentive,equity incentive as an effective long-term incentive mechanism,its essence is a claim on the company’s residual income,by granting equity incentive object certain company,make it to the development of the company with revenue sharing.The research of foreign scholars on the equity incentive mechanism shows that equity incentive plays an important role in reducing agency costs,improving the principal-agent relationship,and improving the performance of the company.In 2006 the China Securities Regulatory Commission promulgated the "measures for the administration of equity incentive of listed companies(Trial)",China’s equity incentive system began to regulate the road,since 2006 the company launched equity incentive plan,the plate has a total of 284 companies have launched the equity incentive plan,affected by changes in the capital market environment and the relevant equity the Commission issued incentive policies and regulations,although some companies in the development after the suspension / termination of the equity incentive plan,but the concept of equity incentive mechanism is more and more accepted by enterprises.Domestic scholars on the relationship between equity incentive and corporate performance began in the late 90 s,the study focused on the main board market in the two cities of Shanghai and Shenzhen,the A shares of small and medium-sized market research is few.In this paper,the implementation of equity incentive in China 2006-2014 A shares of small and medium-sized board market companies as research samples,the correlation between equity incentive and corporate performance were studied.The study showed that there was a positive correlation between the equity incentive and corporate performance.At the same time,this paper also found that the domestic scholars in the choice of equity incentive performance appraisal index,mostly ignore the impact of non recurring gains and losses and industry factors on the operating performance of the company,the equity incentive as a long-term incentive mechanism,equity incentive will affect enterprise performance may be within the validity period of the company business performance assessment,consider the impact of non recurring gains and losses and the industry factor is more reasonable.