Research On The Impact Of Equity Incentives Of Chinese GEM Companies On Company Performance

The separation of ownership and management is a remarkable feature of contemporary enterprises.In the process of shareholders and management seeking the maximum value respectively,there exists a great information asymmetry and moral hazard behavior.Shareholders usually do not know the company as well as managers,and they have great disadvantages in information acquisition and use.In contrast,managers have great advantages,and they can make operation and management decisions to maximize their own benefits through more accurate and refined internal information.The interests of shareholders and the long-term value of the enterprise are likely to be damaged because of the personal behavior of managers,but it is difficult to monitor this decision in time and judge the rationality of the decision,which is the problem of enterprise management and governance caused by the principal-agent relationship between the two parties.As an important means of corporate governance and incentive mechanism,equity incentive can not only solve the principal-agent problem of enterprises to a large extent,but also play a positive role in optimizing resource allocation,saving incentive costs and other aspects of corporate performance.By binding the long-term interests of managers and shareholders together,the two objective functions tend to be the same in some aspects,and they share the risks and benefits of the enterprise,and the pressure on the supervision intensity of the enterprise can be alleviated to a certain extent.In addition,managers,information advantage gap get cut,greatly enhanced enterprise belonging to their work enthusiasm and participation,to make decisions when considering shareholders' interests and the long-term development of the enterprise aim to strengthen the overall long-term effectiveness of resource allocation,implement the incentives for a long time in a certain extent,can promote the growth of the enterprise value,is conducive to the stability of the enterprise sustainable development.After the rise of the GEM market in China in 2009,the application and research of the equity incentive system in the GEM market has gradually become a hot spot.The sample of this paper is the 331 GEM companies that implemented equity incentives from 2013 to 2017,first learning and summarizing domestic The research status of external related problems,the definition and description of the concepts of company performance,equity incentives and related mechanisms,based on this,based on factor analysis to obtain the company,s comprehensive performance,and then use regression methods and other empirical methods to study the GEM The impact of equity incentives,equity incentives and different incentives on the company's performance.The empirical results show that the implementation of equity incentives by GEM companies can promote the company's performance in the whole period of the program;the intensity of equity incentives is significantly positively correlated with the company,s performance;for different incentive targets,the incentive effect of restricted stocks is better than stock options..Finally,based on the empirical results,relevant recommendations are put forward,including the national legal system to improve the GEM market and the implementation of equity incentives,to improve the effectiveness of the market and to provide a good environment for the implementation of equity incentives;Reform and improve corporate governance capabilities,and at the same time recommend further optimization of equity incentives from assessment indicators,incentive selection,and ratio and validity.