Study Research On The Equity Incentive Effect Of Listed Companies

The necessity of equity incentive comes from the moral hazard of senior executives caused by information asymmetry under the separation of ownership and management.Equity incentive is an effective tool to solve the principal-agent problem in modern corporate system.Equity incentives allow managers to participate in decisions based on shareholders’ rights in the form of equity grants to alleviate the conflicts of interest between principals and agents.With the clear guidance of relevant policies,equity incentive has been on the right track and formally entered the golden period.The author adopts the method of theories,demonstration and case analysis to deeply discuss the transmission mechanism of equity incentive and comprehensively analyze the effect of equity incentive.Firstly,this paper analyzes the situation of equity incentive in Chinese A-share listed companies and makes an empirical study on the results of equity incentive.The first step is to study the relationship between equity incentive level and accounting performance,market performance,R&D investment.The empirical results show that the implementation of equity incentive plan can improve accounting performance,market performance and R&D investment level.The second step is to study the contract elements in the equity incentive plan: incentive strength,incentive model,incentive period and incentive motivation on the company’s accounting performance,market performance,and R&D investment.Empirical results show that the impact of incentive intensity,incentive period,equity incentive model and incentive motivation on company accounting performance,market performance,and R&D investment is positive.Secondly,this article takes Shenzhen Inovance Technology Co.,Ltd.as a case study object and evaluates the three equity incentive effects of Inovance Technology from four aspects: incentive motivation,accounting performance,shareholder wealth effect,and employee behavior.To investigate incentive motivation,the author mainly analyze the excess cumulative rate of return before the draft is promulgated.To investigate the accounting performance,the author mainly analyzes the aspects of profit level,capital structure and solvency,operating ability and growth ability from the horizontal and vertical aspects.To investigate the shareholder wealth effect,the author mainly analyze the stock price changes in the 12 months after the implementation of the equity incentive plan.To investigate the behavior of employees,the author mainly analyzes the employee talent flow and work efficiency.It is found that the motivation of the initial equity incentive plan is incentive motivation,accounting performance is improved,shareholder wealth effect is positive,and employees have positive effects;In the second phase,the motivation of equity incentive plan is doubtful,accounting performance is improved,shareholder wealth effect is negative,and employees have positive effects;The motivation of the third phase of equity incentive plan is incentive motivation,management performance is improved,shareholder wealth effect is positive,and employees have positive effects.Therefore,the author draws inspiration from the Shenzhen Inovance Technology Company.This paper enriches the research method of equity incentive effect,and also has strong theoretical and practical significance for the formulation and improvement of equity incentive scheme.