Research On The Impact Of Equity Incentive On Corporate Performance

Today in the era of knowledge economy,the competition of market economy has changed from mechanical production oriented competition gradually to human capital oriented competition.Human capital has gradually become one of the core resources in modern times.How to improve the efficiency of the use of human capital,and then create more benefits for the enterprise,has become one of the hot topics in the academic circles.As a kind of human capital management incentive,equity incentive plays an important role in sustainable development of enterprises since its birth and more and more listed companies use it to promote enterprise development and social progress.With the continuous exploration of equity incentive and the rapid rise of high-tech enterprises in China,more and more high-tech enterprises begin to implement equity incentive plan.Therefore,what is the implementation of equity incentive in China’s high-tech enterprises?Whether equity incentive can promote the improvement of corporate performance in the context of China’s special system?What are the effects of different equity incentive models and corporate performance?The research of foreign scholars on the issue of equity incentive started earlier,but there are few literates about the combination of equity incentive,equity incentive mode and corporate performance.At the same time as the corporate governance structure and the different characteristics of capital market,influence factors of equity incentive scheme under different economic environments also exists differences,and differences in indicators of business performance,the foreign research conclusion is not suitable for the situation of our country.Therefore,it is important to choose relevant indicators more in line with the actual situation of our country based on characteristics of China’s capital market.According to the characteristics of high tech listed companies in our country,study the impact of equity incentive on the performance of listed companies by the combination of equity incentive and incentive model is rather significant.This paper elaborates on the existing research results and the theory of equity incentive,aiming at these problems put forward two hypotheses,selects the 2013-2015 implementation of the equity incentive plan of high-tech listed companies as the research sample for empirical validation.On the basis of descriptive statistics,multiple linear regressions were used to explore the effect of equity incentive on the performance of listed companies.The results of this study show that:(1)the listed high-tech enterprises on the implementation of equity incentive plan after years to enhance the degree of enthusiasm,but the implementation situation still exists many problems,in the design of incentive schemes are prevalent in the short period of validity,plan strength and motivation level is not high,the performance evaluation index is too single.(2)The implementation of equity incentive has certain positive effect on the business performance,there is a positive relationship between business performance and incentive intensity;(3)there is little difference in the performance of the company between influences of stock options and restricted stock incentive.Finally,according to the conclusions of this study,some suggestions and prospects are put forward.First,construct a more strict information disclosure system,punish the enterprises in violation of the rules of the market strictly,and improve the effectiveness of China’s capital market in order to make the stock price reflects the true level of business operations.Improve the manager market;provide a complete selection mechanism for the selection of excellent managers.Then,for enterprises,choose the right equity incentive model according to the characteristics of their own industry and operating conditions.At the same time,it is necessary to establish a reasonable performance evaluation system,the overall operation of the enterprise and the staffs performance contribution at the same time.