Research On The Equity Incentive Effect And The Influencing Factors Of Incentive Ways

With the continuous development of commodity economy and the continuous improvement of laws and regulations on equity incentive in China,equity incentive is rapidly popular among Listed Companies in China.From 2006 to 30 June 2018,listed companies in China issued a total of 1834 draft equity incentives.The choice of equity incentives and the design of mechanisms are worth studying.This not only can promote the further development of China's capital market,but also can provide reference for more listed companies to implement equity incentives.In modern economy,social division of labor is more detailed.Modern enterprise managers and owners are separated,and their interests are different,which leads to the principal-agent problem.In the principal-agent relationship,there is information asymmetry between shareholders and business managers.As the owner of an enterprise,shareholders do not participate in the daily operation and management of the enterprise.This asymmetry easily produces a series of moral hazards.To avoid moral hazards,restraint mechanism and incentive mechanism should be combined.The traditional salary system can not combine the long-term goal of the enterprise with the self-interest of the managers.Equity incentive system solves this problem well,makes the interests of shareholders and managers align,and effectively reduces agency costs.In theory,there are nine main ways of equity incentive,but most modern enterprises adopt two modes: restricted stock and stock option.Among the 1834 stock incentive plans accumulated from 2006 to 30 June 2018,1086 restricted shares accounted for 59.21%,and 559 stock options accounted for 30.84%.It can be seen that most listed companies in China choose these two modes for stock incentive.After the implementation of the equity incentive scheme,the financial and nonfinancial aspects of the company have improved,the advantages and disadvantages of the two equity incentive methods,and the factors affecting the choice of listed companies.To solve these problems,more attempts and data analysis are needed.This paper studies the effect of equity incentive and the main factors affecting restrictive stock and stock options,takes Wind Information and related data from CSMAR database as the source and basis,and takes Livzon Pharmaceutical Group's equity incentive case in 2017 as the breakthrough point,with a view to providing certain basis and reference for the selection and development of equity incentive mode in China in the future.