Research On Short & Medium Term Investment Opportunity Of Restricted Stock Incentives

Since the implementation of the reform of stock ownership incentive in 2006,stock option incentive plans are more and more,in which restricted stock incentives has been the most mainstream way.However,there're are limited researches targeting at the short and middle term investment return of companies who implemented restricted stock incentives and its influence factors,especially research from the perspective of investors' practice.This research firstly overviewed stock incentives system in China with comparing the restricted stock and stock option.Then analyzed the practice situation of restricted stock incentives.Thirdly,through a combination of descriptive statistics and empirical approach of event research method,proved that there's a significant cumulative excess returns which is greater than 0 of restricted stock incentive plans in the short term(10 days)and the medium term(200 days)from two dimensions of market and year.Fourthly,using multiple linear regression model to analyze influence factors of accumulated excess return of restricted stock announcements in the future the short term,short-term,medium-term incentive plan,and finds stock with high turnover ratio always performed better,company with better historical growth or using incentive fund performed better in short term,while company with smaller market cap or listed in main board or in emerging industries performed better.In the end,based on the conclusion,proposed investment strategies and did back-test.