The Impact Of Equity Incentive On Market Value Management Performance Of Gem Listed Companies

Nowadays,equity incentive has become a long-term incentive system for most listed companies to motivate and retain executives and core employees.Many scholars have also conducted in-depth study on the implementation effect of equity incentive.From the research content,the academic research mainly focuses on the impact of equity incentive on financial performance.And the equity incentive market reaction,and both of these two aspects are separated to study,however,only a single financial index or market response index can not measure the implementation effect of equity incentive.Market value management system was officially put forward in May 2014 in the State Council promulgated the "Nine New Countries" which includes value creation,value realization and value management.Market value management performance is a quantitative evaluation of market value management of listed companies,mainly by value creation ability(financial performance)and value realization ability(market).Performance)consists of two parts,which can comprehensively consider the operating results of listed companies,and it will be more scientific and effective to consider the implementation effect of equity incentive with market value management performance.Based on this,this paper selects the GEM listed companies with the highest degree of equity incentives as the research object,focusing on the impact of equity incentives on market value management performance of GEM listed companies.Firstly,this paper sorted out the literature about equity incentive and market value management,and combined with relevant theories,elaborated the impact path of equity incentive on market value management performance.Secondly,this paper analyzed the current situation of equity incentive scheme and market value management of Listed Companies in GEM from 2011 to 2016.Finally,we select the listed companies on the GEM as the case company,and analyze the market reaction and the impact on market value management performance.The results show that,on the one hand,equity incentives set the financial performance exercise index and reduce the principal-agent cost of listed companies to improve the performance of listed companies,on the other hand,the management gains from the underlying stocks will be directly linked to the market performance of listed companies.Hook,this drives management to pay attention to and stabilize the company's share price during the equity incentive period,so as to enhance the market performance of listed companies.From the above two aspects,equity incentive can improve the market value management performance of listed companies to a certain extent.The results of the text case analysis also show that the market value management performance of Handel Information has been greatly improved during the six consecutive equity incentive periods from 2011 to 2016.However,from the case analysis,we also find that the value realization ability of Handel Information has declined in the last two years,even slightly lower than the non-implementation of equity incentive in the GEM market.The average level of value realization ability of listed companies.In view of these problems found in the study,this paper puts forward the following suggestions:market value indicators into the evaluation indicators of equity incentives of listed companies;reasonable optimization of the equity incentive scheme of listed companies on GEM;improve the capital market and legal environment;encourage listed companies on GEM to use equity incentive system.To sum up,this paper explores the market value management effect of equity incentive with the help of market value management performance evaluation system,and considers the performance level(intrinsic value)and market performance(external value)after the implementation of equity incentive,or enriches the relevant research on the implementation effect of equity incentive of Listed Companies in China to a certain extent.