The Empirical Study On The Impact Of Enterprise Equity Incentive On Enterprise Performance Of Gem Enterprises Based On Threshold Regression

The equity incentive model was started lately in China,and in the GEM is less than 10 years.The relevant literature mainly focused on the Motherboard enterprise and the SME,and fewer on GEM.Through analyzing the current situation of equity-based incentives implemented by China's GEM companies,and finding regular characteristics through quantitative analysis,this paper studies the factors that influence the impact of the equity-based incentives on corporate performance based on mature research methods in existing literature and index selection.On the basis of literature and data analysis,it is found that the equity-based incentives implemented by China's GEM companies has a positive effect on the improvement of corporate performance.There is a non-linear positive relationship between them.This paper attempts to study the choice of incentive methods and degree.And the use of threshold regression research method is taken into consideration for further analysis and study.The incentive degree is analyzed in detail from the overall sample and the classification sample,that is,the incentive method,to explore which incentive methods and what level of incentives can make the equity-based incentives more effective.Based on the actual situation of listed companies on the GEM and the reflection of financial statements,innovation has been made on the content and research methods in this paper: First,in terms of content,the impact of GEM equity incentive on business performance is studied,especially the role of earnings management,and the impact of equity incentives on business performance befor e and after the adjustment of earnings management is respectively analyzed;secondly,in the application of research methods,the threshold regression model of equity incentive influence enterprise performance is established first.The GEM enterprise equity incentive implementation time is not long,the lack of mature incentive model,so this paper focuses on the different incentive threshold on the performance of enterprises in order to explore the appropriate incentive to maximize the promotion of enterpri se value.This paper uses the financial data of 125 listed companies participating in the implementation of equity incentives on the GEM as a research sample to establish a panel regression model and study the impact of incentive degree and methods on enterprises performance.In empirical analysis,the explanatory variable is the total assets return before and after excluding the "noise" of earnings management,Explain variables are the degree of equity incentive and incentive target virtual variables,control variables are the ownership concentration,the company size,company executive compensation and the joining together of two position,the empirical model using panel regression model.Then the threshold regression model is used to study the influence coefficient of equity incentive on enterprise performance under different equity incentive.Finally,panel regression and threshold regression are used to analyze the samples sorted by incentive standards before and after the adjustment of earnings management.The results of the analysis show that:(1)Before adjustment of earnings management,there is a nonlinear positive correlation between business performance and equity incentive.When the degree of equity incentive is less than a single threshold value 0.9224%,the raise of equity incentive significantly enhances business performance,under the significant level of 5%;When the degree of equity incentive is greater than 0.9224%,both of them still have a positive effect under the significant level of 10%,but their effects have been reduced.Compared with stock options,the restricted stock incentive has more obvious positive effect on business performance.(2)After excluding the "noise" of earnings management from business performance,the positive effect of equity incentive on business performance is weakened.When the degree of equity incentive is less than the single threshold value 2.1414%,the raise of equity incentive has an adverse impact on business performance,under the significant level of 10%;When the degree of equity incentive is greater than 2.1414%,the increased degree of equity incentive has no significant effect on business performance.