An Empirical Study On The Impact Of Equity Incentive Methods On Company Performance

Equity incentives are adopted by listed companies as an effective means to reduce the company's agency costs,and are increasingly favored.The equity incentive plan implemented by listed companies in China is dominated by restricted stocks and stock options.Different equity incentives have different effects on the improvement of company performance.The same stock incentive method is used by companies with different ownership systems.Whether the effects are the same or not,clarifying these issues can not only enrich the theoretical research results on equity incentives in China,but also have practical significance in implementing appropriate equity incentive methods for listed companies with different ownership systems in practice.Based on the theoretical basis of principal-agent theory,economic human behavior theory,benefit convergence hypothesis,and managerial defense hypothesis,this paper selects the listed companies that have announced the implementation of equity incentives in the A-shares from 2012 to 2016 as the research object,and the choice of equity incentive methods in China.The status quo of the implementation of equity incentives announced by listed companies with different ownership systems was statistically analyzed.The empirical study design measures the index of corporate performance as return on net assets,and chooses seven factors such as the level of equity incentive,equity incentive,ownership,company size,equity concentration,and debt level to establish a regression model.Descriptive statistics and correlation analysis were performed on the data.Multiple regression analysis was used to verify the assumptions of this article.Finally,conclusions were drawn.The research show that with the increase in the degree of equity incentives,the company's performance will increase,and there is a positive correlation between the degree of equity incentives and company performance.At the same time,equity incentives and the nature of company ownership will affect the impact of equity incentives on firm performance.Under different equity incentives,companies that implement restrictive stocks can achieve better corporate performance,and the impact of stock options on firm performance is not significant.Examining whether different equity incentives are affected by the nature of ownership and the company's performance,we find that the implementation of restricted stocks in non-state controlled listed companies can achieve better results,and the impact of incentives on corporate performance in state-controlled listed companies.Not obvious.The study also finds that there is a significant positive impact on company size,equity concentration,and choice of equity incentives,and that there is a significant negative correlation between debt level and equity incentives;under the ownership of different companies,company size and equity The degree of concentration has a positive correlation with the nature of the ownership of the company,and there is an inverse correlation between the levels of liabilities.