The Research On The Motivation And Corporate Performance Of Equity Incentive Of The NEEQ-listed Companies

On December 31,2013,the National Equities Exchange and Quotations(NEEQ)was established,and the "New OTC Market" officially became a national trading system for non-listed public companies.Since the New OTC Market has relatively low requirements on the profitability and corporate governance structure of enterprises applying for listing,it lowers the threshold for enterprises to enter the capital market and allows more small and medium-sized enterprises in the initial stage to use the capital market for financing,which,in some extent,solves the financing difficulties of small and medium-sized enterprises.After the official opening of the New OTC Market,the number of listed enterprises keeps increasing.As of December 31,2018,the number of listed enterprises on the New OTC Market has reached 10,691.The New OTC Market in our country focuses on the growth,innovative and technological small and medium-sized high-tech enterprises.Companies become more and more dependent on the core talents.Because the equity incentive can unite the individual and corporate in their interests,it can help the listed companies to reduce the short-term behavior of management and workers,attract and retain people.Therefore,study the equity incentive of enterprises in the New OTC Market is of great significance.According to the information disclosed by the National Equities Exchange and Quotations(NEEQ),in 2014,only 8 listed enterprises implemented equity incentive,but as of December 31,2018,the number of enterprises implementing equity incentive has reached 779.From statistical data,although the number of enterprises which implement equity incentive increased each year,it reached its peak in 2017.In 2018,the number decreased by 26.74%.Compared to the total number of enterprises in the New OTC Market,the number of enterprises which implement equity incentive doesn't match the market capacity,so it shows that the equity incentive of the New OTC Market is still in the exploration of infancy.There are still a lot of problems in the application that needed to be improvedBased on the theory of equity incentive related,through concluding the domestic and foreign research achievements about the equity incentive systematically,I select four cases companies which belong to the information technology in the service industry.Through the analysis of the motivation of the implementation of equity incentive plan,equity incentive scheme comparison and the impact on corporate performance,combining with the characteristics of the environment of the New OTC Market,I make a conclusion about the effect of equity incentive of the New OTC Market,and find some shortcomings in the present equity incentive plans of enterprises in the New OTC Market.I raise some suggestions to provide reference for listed companies who want to implement equity incentive later.