Research On The Impact Of Equity Incentive On The Performance Of Listed Companies

At the beginning of the 20th century,with the maturity of foreign equity incentive development and the implementation of China’s equity split reform,many domestic listed companies began to announce and implement equity incentives plan.However,due to the short period of implementation of equity incentives in China,lack of experience,and related laws have not been perfected,some listed companies have not achieved the expected significant results after implementation.In 2016,after China promulgated the "Measures for the Administration of Equity Incentives of Listed Companies",relevant laws and regulations were improved.After implementing equity incentives,listed companies gradually discovered that equity incentives have reduced the contradiction between owners and operators.The gradual convergence not only strengthens the company’s management,but also brings greater benefits to the company.However,due to the difference in the nature of the company that implements equity incentives and the choice of incentive models,the incentive effects are also different.Therefore,the issues related to the impact of equity incentives of listed companies on company performance have once again become a hot topic for scholars to study.On the basis of reading,collecting data and analyzing research on domestic and foreign literatures,this paper proposes three hypotheses related to equity incentives and company performance,selects Shanghai and Shenzhen A-share listed companies as the research object,and uses descriptive statistical analysis,correlation analysis and Multiple regression analysis method to test the correlation between equity incentives and company performance by spss software.Then select company A to conduct a case study,analyze the four performance indicators of company A’s profitability,operating capacity,solvency,and development ability,so as to Supplement the results of the empirical analysis.Finally,according to the conclusions of empirical research and case analysis,relevant suggestions are put forward.Research conclusions show that:Equity incentives are positively related to the performance of listed companies,and the implementation of equity incentives can significantly improve company performance;among listed companies of state-owned enterprises and private companies,equity incentives have different effects on company performance;different incentive models has different effects on the performance of listed companies and restricted stocks have a more obvious effect on the performance of listed companies than stock options.The case analysis also shows that equity incentives have a clear effect on the performance of listed companies.Therefore,when a listed company implements equity incentives,it is necessary to select an appropriate incentive model according to the nature of the company and its own situation,optimize the incentive effect,and promote the improvement of company performance.