An Empirical Study On The Executives Equity Incentive,Corporate Social Responsibility And Firm Value

With the development of the economy,the issue of corporate social responsibility more and more appears.It mainly due to many enterprises only pursuit profit and pay more attention to the compressing explicit cost in the process of production,so they always ignore the stakeholders' interests.Of course,corporate don't always think about that they will burden more hidden cost without fulfilling social responsibility.In fact,fulfilling social responsibility will do more good than bad.Because corporate social responsibility can enhance its image in the minds of all stakeholders and optimize its competitive environment,which plays a positive role in the long-term development of enterprises.Furthermore,Executives hold the actual control rights and part of decision-making power of an enterprise,and they are responsible for the implementation of corporate decision-making,so their work efficiency is closely related to the fate of enterprises.The self-interest of management result from the separation of two ownership should not be neglect in the management process.In order to solve this problem,equity incentive mechanism has been sprung up.If the corporate actively commit the social responsibility,the implementation of equity incentive will motivate managers to take stakeholder interests and the long-term interests of enterprises into account.this is the combination of ease the principal-agent relationship.Therefore,It is significant to study the impact of executive equity incentive and social responsibility on firm value.Firstly,this paper reviews and summarizes the relevant literature of experts and scholars from home and abroad,and from which we explore the blank in the research of corporate social responsibility basic moderator;secondly,basing on stakeholder theory,contract theory and the principal-agent theory puts forward three hypothesis;Thirdly,the paper uses analytic hierarchy process method to examine the relations between the executive stock ownership incentive,corporate social responsibility and the interactive items of them with the corporate value.From the empirical analysis results,we can draw the following conclusions: First,Executive equity incentive can make positive enhancing effect to firm value;Second,the implementation of corporate social responsibility and the firm value was positively correlated;Third,Under the moderating effect of social responsibility,executives equity incentive makes a positive effect on firm value in the process.Finally,combined with the empirical results,considering China's current construction of capital market is not perfect,we put forward some policy suggestions that base on incentive mechanism of executive equity and social responsibility.