The Empirical Research About How Executive Equity Incentive Impacts The Enterprise Investment Efficiency

As a general and effective incentive mechanism,equity incentive has been implemented in 89% of the world's top 500 companies.The number of companies with equity incentives in the domestic a-share market has continued to grow since 2006 and has accumulated to nearly 900 in 2016.Publicly in 2016 in the enterprises of the equity incentive plan,about 46% of the enterprises of public equity incentive plan before in the history,a little more than half of the companies for the first time to carry on the equity incentive plan,illustrates the equity incentive have good forecast effect.Investment efficiency,on the other hand,is an important factor affecting corporate performance,but because of the principal-agent problem,when making investment decisions,corporate executives is likely to achieve their own private interests,and deliberately choose investment a lot of net present value is negative or low project,caused the enterprise over-investment;It is also possible to abandon projects with higher net present value and negative investment,resulting in insufficient investment in enterprises.However,the root of the equity incentive system is to solve the principalagent problem,so it is necessary to study whether the equity incentive has an impact on the investment efficiency of enterprises.So,can the implementation of domestic equity incentive restrain overinvestment or underinvestment? Is the higher the intensity of equity incentive the greater the inhibitory effect on the non-efficiency level of investment?According to the above research background,and to solve the related problems,this paper USES normative research and empirical research.By means of literature review,the review of relative literatures about equity incentive and corporate investment,use a database of wind,tide of information network,such as collecting sample data,mainly through SPSS software for data analysis processing,such as the lag issue due to model processing,thus launched three years of 2013-2015 stock options incentive plan and implementation of the private listed companies as the research object(excluding financial companies and ST and * ST company),and extract amount within manufacturing companies as the comparison sample,analysis of 2014-2016 sample enterprises investment efficiency,in order to analyze the equity incentive effect on the investment efficiency.In this paper,the study found that: the inadequate investment of listed companies and the phenomenon of excessive investment,the real implementation of stock option incentive can restrain the excessive investment of listed companies play a role,also can to underinvestment inhibition effect of listed companies,in addition to equity incentive intensity is higher,the more can improve the investment efficiency of the enterprise.In short,equity incentive has certain positive influence to corporate investment efficiency,encourage enterprises to carry out equity incentive plan,so at the end of the article also puts forward relevant Suggestions in view of the equity incentive.