Empirical Research On The Correlation Between Equity Incentive And Investment Efficiency Of Listed Companies

The incentive mechanism and investment behavior of listed companies have always been paid attention in the academic circle.The equity incentive mechanism helps to make the interests of shareholders and managers as uniform as possible.As the main driving factor of company development,investment behavior is directly related to the future value of the company,and then affects the incentive income of managers.Because of the diversity and complexity of the investment behavior of the companies in our country,coupled with the uneven distribution of disposable financial resources,investors focus on some of the most popular industry,making the investment of different industries discrepant and unbalanced.On the one hand,some sectors of some industry are overproductive,and their waste of economic resources is serious.On the other hand,some enterprises in some industries have been underinvested.The difference in investment efficiency between these industries makes the research on the relationship between equity incentive and investment behavior get increased attention.On the basis of literature review and theoretical analysis,this paper studies the impact of equity incentive on investment efficiency of listed companies of three industries.First of all,this paper reviews,classifies and remarks the research status of equity incentive,non-efficiency investment,and the impact of equity incentive on inefficient investment in the research status section;based on the principal-agent theory,information asymmetry theory,this paper analyzes how equity incentive govern non-efficiency investment in terms of the motivation and possibility of non-efficiency investment.In the sector of current situation research,this paper analyzes the coverage rate and industrial distribution of the equity incentive plan of listed companies in China since 2006.Secondly,according to the theoretical analysis,this paper puts forward two important assumptions,establishes models,defines variables using the research achievement at home and abroad for reference,and take the A-share listed companies in Shanghai and Shenzhen stock markets from 2012 to 2016 of manufacturing,information technology industry,electricity,electric heating gas and water production and supply industry as research sample.Empirical tests and result analysis of Richardson(2006)non-efficiency investment regression model was conducted.Then,this paper takes the residuals of the inefficiency investment regression model as the explanatory variables,and studies the different effects of equity incentive in the investment field of different industries.The empirical results show that the non-efficiency investment behavior exists in the listed companies of three kinds of industry selected in this paper,and insufficient investment accounts for more than half of the phenomenon of non-efficiency;equity in manufacturing and information technology industry only has significant inhibition effects on under-investment,but has no significant inhibition effect on over-investment;the inhibition effect of information technology industry is more significant than the inhibition effect of manufacturing;in the industry of production and supply of electricity,heat,gas and water the equity incentive has no significant inhibition effect on inefficient investment.Finally,the conclusion is summarized and the reasons for the different effects of equity incentive in different industries are analyzed.Relevant suggestions are put forward to improve the effect of equity incentive.According to the limitations of this paper,the ideas for future research are enriched.