Research On The Influence On The Equity Incentive Of The Listed Companies On GEM

Equity incentive is one of the important means of corporate governance in listed companies.Scholars at home and abroad have made many researches on the impact of equity incentive on corporate performance,but the research results are not uniform and can be divided into three categories: positive correlation,negative correlation and no obvious relationship.Firstly,this paper discusses the research literature of domestic and foreign scholars from two aspects of theory and empirical test,and theoretically expounds the impact path of equity incentive on corporate performance.Then,the current situation of equity incentive for listed companies on GEM in China is statistically sorted out.Finally,taking Huichuan Technology,a listed company on GEM,as an example,the implementation and exercise results of its four equity incentive schemes are analyzed in detail,and the scheme elements are compared and analyzed.Using event analysis method,this paper illustrates the positive effect of equity incentive on the short-term market by calculating the excess cumulative returns in the window period of equity incentive events;using simple financial indicators and economic value added,and setting conditions to select comparable companies,it analyzes the impact of equity incentive on the long-term financial performance of the company.Through the case study,it is found that Huichuan technology equity incentive has formed obvious excess returns in the event window period,which shows that market recognition of its equity incentive can improve the company’s operating efficiency;compared with the simple financial indicators of comparable companies,it is found that Huichuan technology can maintain relative stability when the industry trend declines,and some indicators change from below the industry average to higher than the industry average.During the period of equityincentive,Huichuan technology keeps rising steadily,which shows that business operators are more rational in choosing investment projects and choosing projects whose output is obviously higher than that of input,so as to improve the company’s long-term performance.Through the study of Huichuan Technology Equity incentive case,this paper concludes that equity incentive can effectively promote the management and core personnel to improve the company’s performance,and in the specific implementation plan.