Equity Incentive,Agency Cost And Firm Performance

In 2006 China formally introduced equity incentive this advanced management system.Compared with the widely used abroad,the system of Listed Companies in China is still relatively slow progress.From the implementation of the equity incentive system in China since the equity incentive effect of more and more scholars,related research is also a superb collection of beautiful things.However in our country,the macro and micro environment and the western countries are very different,although the effect of most of the equity incentive in China's market conditions is affirmed,but the equity incentive is how to through the internal mechanisms of corporate performance,so far there is no unified view So.With the deepening of research,more and more scholars not only confined to the study of equity incentive will have an impact on corporate performance,but more concerned about equity incentive is how to influence corporate performance through the mechanism of the effect and principle of deep.The text will be equity incentive,agency cost and firm performance into a unified analysis framework,and according to Zhao etal.(2010)put forward the"intermediary effect model of equity incentive agency cost enterprise performance"procedure to test the mediating effect,with panel data of 2007-2016 China A shares of listed companies as the research object an empirical test of the equity incentive effect on corporate performance and the two types of agency costs,and the intermediary role of the two types of agency costs which plays in the relationship between equity incentive and corporate performance.In addition,taking China's listed companies equity incentive mode in stock options,For the stock and stock appreciation rights,the effect on the performance of enterprises with different equity incentive mode may vary,but many of the existing researches all equity incentive model as homogeneous,this paper considers the different incentive mode because the mechanism of the empirical research on the two kinds of incentive incentive are there any significant differences,to provide ideas for the development of equity incentive plans of listed companies better.The results show that:first,equity incentive has significantly enhance the role of enterprise performance;second,the effect on the performance of enterprises with different equity incentive model is different,and the conclusion of this paper,the implementation of stock incentive to be better than the effect of the implementation of incentive options.Thirdly,equity incentive can significantly reduce the first class the agency cost,but the effect on the second types of agency costs is not significant.Fourth,to examine the mediating effect model constructed by bootstrap method,the first kind of agency cost and the second agency cost between equity incentive and enterprise performance play some intermediary role,namely equity shock Lai is through the pathway inhibit the two types of agency costs on firm performance indirectly enhance effect,but the mediating effect of the second types of agency costs close to the edge of the intermediary effect,the intermediary effect than the first kind of agency cost significantly.From the previous research and practice the correct implementation of equity incentive can promote enterprise performance is enhanced to a certain extent,so the equity incentive is worthy of promotion.However,at present China's capital market is still not perfect,the tax system is not perfect,a barrier to effective implementation of equity incentive.Although the results of this study are equity the incentive effect on the second types of agency costs is not big,but this does not explain the equity incentive in the governance of the second agency problem makes no sense.Since the implementation of equity incentive,Shanghai and Shenzhen two A shares of Listed Companies in the implementation of equity incentive are more inclined to choose stock option incentive mode for large enterprises.lt is better than the way of incentive stock option incentive,so the government should guide enterprises to use restricted stock incentive mode.In addition,in the implementation of equity incentive but also to other corporate governance mechanisms as auxiliary.