Research On The Relationship Among Equity Incentives,Investment Efficiency And Firm Performance

Nowadays,with the continuous development of the economy,society and market,the management and business model of the company has broken the norm.At present,it is difficult for businesses to avoid the principal-agent conflict between owners and operators.This has also made the study of corporate governance in related fields become Academic focus.One of the management incentives commonly used in modern business management is equity incentives.In 2006,China began to implement the Measures for Equity Incentives for Listed Companies,and with the support of related Regulations,listed companies in China started from the tentative implementation of equity incentives to joined the team that actively practices equity incentives.Since the development of high-tech listed companies relies heavily on the knowledge,skills and professionalism of practitioners,how to better motivate the potential of employees is crucial.In order to attract and retain talented employees,high-tech listed companies tend to use equity incentives to motivate executives and core technical employees.Although there are great uncertainties in whether listed companies can complete the steady development of their companies through equity incentives,there are still many experts and scholars who conduct analysis and investigations in this area,and always pay attention to the effect of equity incentives.The reference material for this article is listed high-tech companies that announced and implemented equity incentives between 2010 and 2016 in China.Based on these survey data,this paper carefully analyzed the company's performance and the linkage of the implementation of equity incentives,and studied whether the implementation of equity incentives has a direct or indirect effect on the company's performance changes.The idea of this paper is to first elaborate the relevant concepts and theories and sort out the domestic and foreign literature,and then conduct a statistical and preliminary analysis of the status quo of equity incentives for high-tech listed companies in China.Next,this paper uses the empirical analysis and the mediation effect analysis to conduct in-depth examination.The effect of equity incentives,finally put forward corresponding policy recommendations.The main conclusions of this paper are:?Based on the analysis of the results of the survey,the number of new and high-tech listed companies adopting equity-based incentive business model is already very large,and the scale is still expanding.At the same time,the geographical differences among these enterprises are obvious.The overwhelming majority are distributed in developed cities.Moreover,the problem with the implementation of equity incentives is that forms are very limited,leading to the situation that the effect achieved is relatively weak.?The level of equity incentives and corporate performance of China's high-tech listed companies are inverted u-shaped,with the inflection point at around 5.22%.This shows that the effect of incentive measures has not always been obvious.When the level of equity incentives at the left of the inflection point,corporate performance will increase as the level of incentives increases;when the level of equity incentives is at the right hand side of the inflection point,the rise of incentive levels will have a negative effect on the value of the company.?At the same time,the survey results also show that the level of equity incentives will indirectly affect corporate performance through the impact on the company's investment efficiency.In view of the above conclusions,from the perspective of optimizing the equity incentive and investment efficiency of high-tech listed companies,this paper proposes policy recommendations from the perspective of the government and relevant agencies and the company itself.