Equity Incentive,Ownership Concentration And Corporate Performance

How to conduct corporate governance has always been a problem that modern enterprises have always emphasized and studied.The 19th National Congress has also raised the issue of how to form an effective corporate governance structure,and constantly optimize and adjust the ownership structure to a very important level.The Yangtze River Delta Economic Belt has become a pioneering demonstration area for corporate governance in China with its high degree of implementation of equity incentives and widespread incentives.As a barometer of China’s economic market,listed companies play a very important role in the entire capital operation.Therefore,whether the ownership structure of listed companies in the Yangtze River Delta Economic Zone really affects the economic development of the Yangtze River Delta region,and whether it plays a key role in the company’s performance.This paper takes the 2007-2017 Yangtze Delta Economic Belt with 1000 A-share listed companies in Jiangsu Province,Shanghai and Zhejiang Province as samples,and builds a multivariate linear regression model based on the previous research experience and theoretical discussion.Combining the methods of comparative argumentation,this paper selects two major indicators(ROA and ROE)to analyze the empirical results of the company’s performance,and studies the relationship between equity incentives and company performance,equity concentration and company performance.The relationship between equity incentives and firm performance,and the extent to which three different equity concentrations are concentrated.In order to ensure the reliability of the empirical results,at the end of this paper,the explanatory variables representing the company’s performance and the explanatory variables indicating the concentration of the stock are replaced respectively,and the multiple linear regression model is used again to test the robustness of the empirical results.The conclusions of the study indicate that the company’s grant of management equity incentives does affect the performance of the company’s performance,that is,there is a correlation between the two.Specifically,under the relatively decentralized equity model(less than 20%),equity incentives and corporate performance have no effect;under the mode of relatively concentrated equity(between 20%and 50%),equity incentives and corporate performance exist.Positive impact;in the highly concentrated equity model(greater than 50%),there is no significant correlation between equity incentives and corporate performance.In addition,based on the empirical research results of this paper,the higher the shareholding of shareholders,the greater the enthusiasm for the company’s supervision,that is,the higher the concentration of equity,the better the company’s performance.