Research On The Relationship Between Equity Incentives And Company Performance Based On The SSE STAR MARKET

In recent years,China has begun to realize non-tradable shares to stimulate economic development through such innovative reform.Therefore,many enterprises have begun to implement equity incentive system in order to seize the opportunity of development.The existing research on equity incentive is mostly focused on a-share listed companies,but there are few researches on equity incentive and corporate performance of the Shanghai Stock Exchange Science and Technology Innovation Board(SSE STAR MARKET).The innovation point of this paper is to select the SSE STAR MARKET enterprises,expand the scope of research in related fields,but also make a contribution to the accelerated development of China’s science and technology industry,and contribute to the improvement of China’s real power of science and technology.In this paper,empirical analysis is adopted to take the SSE STAR MARKET companies as the research object,select the data information of enterprises implementing equity incentive from 2017 to 2020,and creatively select the growth rate of main business and non-net profit growth rate to measure the performance of the SSE STAR MARKET.This paper demonstrates and analyzes the relationship between equity incentive,equity incentive intensity,internal control quality and corporate performance,so as to explore the impact of equity incentive on corporate performance.The conclusion of regression analysis shows that equity incentive can effectively improve enterprise performance,which is consistent with hypothesis 1.There is a positive correlation between equity incentive intensity and performance level,and hypothesis 3 is true.Therefore,the implementation of equity incentive can effectively promote the development of enterprise performance,and the effect is remarkable.Through this study the author hope to make contributions to the development of equity incentive system and the improvement of regulatory policies.In terms of economic value,by making more enterprises realize the benefits of equity incentive,equity incentive plan can be promoted,which not only protects the interests of employees and helps the healthy and long-term development of enterprises,but also greatly promotes the development of social innovation,thus promoting the development of social economy,technology and other aspects.