Executive Equity Incentive And The Deviation Degree Of Capital Structure

Rational capital structure is helpful for the development of enterprises,but in reality,a lot of enterprises have serious high leverage or low leverage,enterprises should use various methods to reduce the extent of the actual capital structure is deviating from the target capital structure and optimize the capital structure.As enterprise managers,executives control the enterprise management decision-making,so equity incentive for them can solve part of the principal-agent problems and increase enterprise value,reduce the risk of enterprise and promote the development of enterprise,it is helpful for the enterprise capital structure optimization,and reduce the degree of deviation between actual capital structure and target capital structure.This paper is to research the effect of executives equity incentive to the deviation degree of capital structure,analyze the difference of the effect in different life cycle phase in detail based on the perspective of enterprise life cycle,and provide suggestions for the enterprise.This article make some correlation analysis from agency theory,incentive theory and the theory of life cycle and so on.Selecting the 2006-2016 data from A-share listed companies in our country,match the enterprises without the implementation of equity incentive with the enterprises that implement the equity incentive by the method of PSM,then make the empirical analysis and get the following conclusions: first,on the whole,implementing equity incentive for executives is helpful to restrain the deviation degree of capital structure,narrow the gap between the actual capital structure and target capital structure;second,the higher proportion of executive equity incentive,the better inhibiting effect on the deviation degree of capital structure;third,the restricted stock has a better inhibiting effect on the deviation degree of capital structure than stock options;forth,under the condition of considering the enterprise life cycle,in the early stage and mature period,executive equity incentive has no inhibiting effect on the deviation degree of capital structure,in the growth and decline,executive equity incentive has some inhibiting effect on the deviation degree of capital structure.Finally we put forward some conclusions,and analyze the deficiency of the paper.