The Impact Of Equity Incentive Policies Of Listed State-Owned Enterprises On Investment Efficiency

According to the spirit of the 19th National Congress of the CPC,making state-owned capital stronger and bigger is an important economic task for our country at the present stage.Strengthening and expanding state-owned enterprises is the most important part of this task.This article will focus on the changes in the efficiency of investment in listed SOEs since the government encouraged the listed state-oMwned enterprises to carry out equity incentive reforms in 2006.This article is mainly divided into three parts.The first part is the study of the relationship between the agency cost and the enterprise investment efficiency,as well as the influence of the listed state-owned enterprises' equity incentive on the agency cost.The second part is the study of the relationship between the overconfidence of the executives and the efficiency of the enterprise investment,as well as the influence of the listed state-owned enterprises'equity incentive to the senior executives' overconfidence.In the third part,the average treatment effect of the treatment group and the control group is obtained by the propensity score matching method.In the whole,it is judged whether the investment efficiency of the listed state-owned enterprises is promoted under the current equity incentives policy.In this paper,propensity score matching method is used to analyze the impact of equity incentives on the efficiency of listed state-owned enterprises,which reduce the sample selection bias.The results show that:(1)The equity incentives plan of listed SOEs aggravates the inefficiency of investment,and the improvement of underinvestment is not obvious,but the overinvestment is deteriorated significantly.(2)The implementation of the policy increased the agency cost of the listed state-owned enterprises,which will significantly deteriorate the investment efficiency of the enterprises.(3)The overconfidence of the executives of the listed state-owned enterprises has been aggravated,thus worsening the overinvestment situation.From the empirical results,we recognize that the incentive effect of the equity incentives of the state-owned enterprises in our country is not satisfactory.Equity incentives policy needs to reform from the aspects of policy making and government intervention in order to make it play its role.