Research On Equite Incentive And High Transfer Behavior Of Listed Companies In Gem

After the gem was opened in the Shenzhen Stock Exchange in October 23,2009,"high transfer" emerge in an endless stream,and the proportion of transfer is far higher than that of the main board company.It is worth noting that many enterprises are not only the simple implementation of the "high transfer" dividend policy,in a short time after the transfer is often accompanied by large shareholders and executives to reduce the stock.It is not difficult to see that this is not only contrary to the original intention of investors,but also a disguised invasion of small shareholders."High transfer" is actually just a digital game,and it will not increase the value of the enterprise itself.Equity incentive is an effective institutional arrangement to solve the agency conflict between the shareholders and the management of the company,but it is easy to be a tool for the management to seek personal interests.The executives with stock options and restrictive stocks are the makers and executors of the "high transfer" dividend policy,which is both capable and willing to sold high price stocks through high transfer.Then,is there any relationship between "high transfer" dividend policy and equity incentive implemented by the GEM listed companies? It is worth studying in depth.First of all,this paper reviews the domestic and foreign literature on equity incentive and "high transfer" through literature research.It understands the motivation of the listed companies to implement equity incentive plan,combs the positive effect and negative effect after the implementation of equity incentive,and finds that the equity incentive is very easy to lead to the self-interest of the executives.After combing the literature of "high transfer" behavior,it is found that the motivation of "high transfer" is often not pure,and it is easy to cause interests to occupy.Then,after analyzing the economic consequences of equity incentive and the market effect of "high transfer",combined with the specific situation of the equity incentive and "high transfer" of the current GEM companies,this paper finds that there is a certain correlation between the two,and tries to explain the mechanism of this relevance.Secondly,this paper adopts case analysis method to analyze the cases of AiEr Eye Hospital from the motives,conditions and economic consequences of the implementation of "high transfer".The results show that the "high transfer" dividend policy implemented by AiEr Eye Hospital has a strong purpose in the choice of timing.The dividend policy of "high transfer" will have an impact on the price of option,the number of stock and the price of the stock.The executives have the motivation to reduce the stock price through this policy and realize the needs of the transport of their own interests.Therefore,the reduction of equity incentive after the "high transfer" can be deduced as a kind of executive interest transfer behavior.Finally,based on the analysis of case enterprises,this paper puts forward three suggestions from the internal,regulatory and investors of the company,combining the current situation of equity incentive and "high transfer" dividend policy in China's listed companies.It is expected that through this study,we can enrich the relevant research on the motivation of "high transfer" and improve the dividend policy and equity incentive system of the GEM listed companies in our country so that the gem can develop steadily.To remind investors and regulators to pay attention to the potential relationship between equity incentive and "high transfer",and to maintain the interests of small and medium-sized investors,thus contributing to the healthy development of the stock market in China.