An Empirical Study On The Relationship Between Stock Incentive And Corporate Performance Of Listed Companies In China's Household Appliance Industry

The household appliance industry is playing an important role in our economy and social progress.Along with the tide of economic globalization,most of the China's home appliance brand has been out of the country,into the international market.Scientific and technological innovation and the competition from the international home appliance market makes the China's household electrical appliance industry environment is becoming increasingly fierce.There is not simple price-war any more,but the comprehensive match with technological,service,core staff,industry chain and channels.The corporate system not only combines the financial advantages of shareholders,but also make full use of the professional management of corporate governance talent.However,the principal-agent issue cannot be ignored.The principal-agent issue brought by the separation of the two powers and it has become an important factor restricting the development of the company.How to solve the principal-agent issue became a hot research topics.As a long-term incentive system,equity incentive is considered as one of the effective ways to solve the problem of principalagent.The equity incentive was introduced into China in the early 1990 s,with its unique system design cleverly tied the interests of the owner and the manager together,prompting the managers to focus on the company's long-term development as well as helping to retain talents.The domestic and foreign scholars' theoretical analysis and empirical analysis of equity incentive show that equity incentive has an important role in motivating business operators,reducing agency costs,improving governance structure and promoting sound operation.The home appliance industry sector includes 43 listed company and there are 21 of them launched equity incentive plan.There are companies launched equity incentive plan more than once while two companies terminate the plan.It is certain that more and more enterprises accept and agree with the equity incentive.This paper takes the listed companies with equity incentive in China's household electrical appliance industry as the research object.We study the relationship between the equity incentive and company's performance.There two kinds of empirical model: pair T test and multiple regression analysis.The results show that the implementation of equity incentive to enhance the company's performance is significant.