Equity Incentive Strength?Agency Cost And Corporate Performance

As the capital market is gradually occupied by joint-stock enterprises.the information asymmetry brought by the gradual separation of enterprise ownership and management rights and the resulting agency cost have become the main obstacles to the improvement of enterprise performance.In a joint-stock enterprise,the goal of shareholders is to maximize the equity of shareholders,executives,however,are more focused on maximizing their wealth.In order to combine the interests of the two,they tend to a common starting point.In this paper,a long-term incentive mechanism is proposed to allocate a certain proportion of shares to the business operators.At present,China's opening to the outside world has been improving,and the reform of the economic system has begun to take effect.In this background,To study the relationship between the equity incentive intensity and enterprise performance,the equity incentive intensity and agent cost and the influence of equity incentive intensity of enterprise performance is through what conduction mechanism three aspects of the problem under the new economic situation can help us correctly handle relations with Senior executive,rationally use the interval effect of equity incentive strength,promote the financial performance of ascension.At the same time,this paper creatively to combine Agent cost and the interval effect of equity incentive strength,it can also enrich and complement the current equity incentive theory and the theory of financial performance.Based on the relevant literatures,this paper analyzes and studies the relationship between equity incentive strength,agency cost and enterprise performance through comprehensive use of theoretical analysis and empirical analysis.In theory,this paper firstly analyzes the related literature and principal agent theory,information asymmetry theory and management incentive theory,secondly,it puts forward the research hypothesis for the relationship between the variables studied in this paper.On the empirical side,this paper selects the data of the listed companies listed in Shenzhen stock market from 2014 to 2016 as samples,Based on the ratio of equity compensation in executive compensation,the equity incentive intensity is used to study the equity incentive,agency cost and enterprise performance,empirical based mainly on descriptive statistics analysis,Person correlation test,multicollinearity test,multiple linear regression analysis and steady inspection measurement tools to establish the regression model to empirical analysis,and according to the research conclusion policy Suggestions are given.The research of this paper shows that equity incentive strength has both incentive effect and defensive effect in enterprise performance,that is,equity incent ive strength and agency cost have interval effect,and in each interval,by adding the agent cost,this variable makes the model fit better.on the(0,62.5%)range,the higher the equity incentive strength,the lower the agency cost and the higher the enterprise performance;In the(62.5%,100%)interval,the higher the equity incentive strength,the higher the agency cost,and the lower the performance of the enterprise.At the same time,the paper also puts the equity incentive strength,agency cost and enterprise performance in the same research system,and proved that agency cost has some mediating effect in each interval.Based on the above research conclusion,this paper put forward relevant policy suggestions mainly from three aspects: First,scientific and reasonable arrangement of equity incentive plan,in addition to the management of equity incentives to form a system of rewards and punishment;Second,improve the internal management mechanism of enterprises and play the role of market supervision;Third,strengthen the construction of professional manager market;Fourth,innovate the incentive system of enterprises and establish diversified incentive methods;Fifth,strengthen the government's tax support,and provide tax incentives to the equity incentive plan;Sixth,expand the scope of equity incentives to build a common stakeholder.