Study On The Premium Effect Of Stock Ownership In China 's A-share Listed Companies

As an institutional arrangement for long-term incentives to the company's management,equity incentives aim to solve the problem of principal-agents that are common in modern enterprise management.As the scale of modern enterprises is getting larger and larger,The ownership of the company is separated from the management rights,and the interests of shareholders and management cannot be consistent,equity incentives are launched with their own unique advantages.So far,the theoretical analysis and empirical analysis of most scholars show that the implementation of the equity incentive plan has a significant positive effect on the corporate performance of the listed company or the shareholder wealth.In January 2006,the China Securities Regulatory Commission promulgated the “Measures for the Administration of Equity Incentives for Listed Companies”,which marked the formal confirmation of the equity incentive system in the legal sense.With the continuous improvement of China's equity incentive policy system,the development of equity incentives in China has gradually matured.Based on the previous studies,this paper is based on the study of whether equity incentives have a long-term premium effect on listed companies' stocks.A sample of A-share listed companies that successfully implemented equity incentives in China from 2010 to 2018,in the nine-year time frame,the long-term premium effect of equity incentives is tracked annually.In the empirical research,in order to overcome the sample selection bias and endogenous problem in the research of equity incentives and avoid the error caused by the sample bias,the paper uses the propensity score matching method to test whether the equity incentive has a premium effect.And whether this premium effect is sustainable.Finally,the method of propensity score matching is used in the same way,and in the heterogeneous sample study,it is analyzed how the premium effect of different listed companies after implementing equity incentives.Through the empirical research in this paper,the company's stock price has a significant premium effect in the long-term after the implementation of equity incentives.The implementation of equity incentives can bring wealth to the shareholders,investors and motivated management of listed companies.Moreover,the premium effect of equity incentives on the stock price of listed companies will continue,and the duration will be about 4 years.After 4 years,the premium effect of equity incentives will become insignificant;that is to say,the implementation of equity incentives will not continue after 4 years.Let the listed company's share price have a significant premium,and the premium effect of equity incentives disappears.In addition,this paper obtains the heterogeneity analysis of the data samples of listed companies.After the implementation of equity incentives by listed companies of different natures,its premium effect is not the same,and some even have no premium effect.Implementation did not play its due role.Finally,some reasonable and feasible suggestions are put forward for the conclusions of this paper,which provide some references for listed companies that are preparing to implement or are implementing equity incentives.