Research On The Impact Of Manufacturing Equity Incentive On Corporate Performance

In recent years,with the rapid economic development in China,the company system has been gradually established and perfected,and the separation of ownership and management rights has gradually formed in enterprises.As an effective means to reduce agency costs,equity incentives have been widely adopted by listed companies.With the continuous advancement of the reform of non-tradable shares in China,more and more companies begin to implement the equity incentive system.Manufacturing listed companies are the mainstream of China's economy,the instrument of rejuvenating the country and the foundation of strengthening the country.Equity incentive is also widely used in manufacturing listed companies.Therefore,it is of great significance to study the equity incentive of manufacturing enterprises in order to improve the management ability,corporate governance level and corporate performance of manufacturing enterprises in China.However,according to the previous research conclusions,there is no uniform conclusion on the impact of manufacturing equity incentive on corporate performance.Some scholars believe that there is a significant correlation between equity incentive and corporate performance,and some scholars believe that there is no correlation between the two.Based on the above premises,this paper firstly combs and analyses the relevant literature on the impact of equity incentive on corporate performance,the impact of equity incentive on corporate performance of manufacturing listed companies and the impact of restricted stock and stock options on corporate performance through literature review;secondly,it combs and analyses the related theoretical basis of principal-agent theory,incentive theory,human capital theory and innovation theory.This paper analyses the impact of manufacturing equity incentive on corporate performance,and examines the impact of equity incentive on corporate performance by distinguishing different equity incentive modes for high-tech manufacturing and traditional manufacturing industries,and explores the differences between different equity incentive modes for high-tech manufacturing and traditional manufacturing companies.Then,analysis were carried outon 6901 selected sample data from 2013 to 2017.The results show that there is a positive correlation between equity incentive and corporate performance of listed manufacturing companies,which is consistent with previous research results.For high-tech manufacturing industry,restricted stock can effectively retain talent and stimulate enterprise innovation,and its incentive effect on corporate performance is better than stock options;for traditional manufacturing industry,the incentive effect on corporate performance is better than restricted stock.Finally,according to the conclusion of the study,we should implement equity incentive plan for manufacturing enterprises,reduce debt financing,optimize the ownership structure,and design scientific equity incentive scheme.The innovation of this paper is that the incentive effect of restricted stock in high-tech manufacturing industry on corporate performance is better than that of stock option,while the incentive effect of traditional manufacturing stock option on corporate performance is better than that of restricted stock.