The Impact Of Equity Incentives On Corporate Financial Performance

As a mechanism to solve the problem of entrusting agency,equity incentive has been widely used in listed companies,and the number of equity incentive implementation plans announced by listed companies in my country is in a growing stage.In order to make the effect of equity incentives better,domestic and foreign scholars have also conducted more and more researches on the content of equity incentives.However,according to the research,it can be seen that there was no consistent conclusion about the effect of equity incentives on corporate financial performance.This paper conducts empirical research on listed private companies,and analyzes the impact of listed private companies’ implementation of equity incentives on corporate financial performance.This paper mainly consists of six aspects: the first chapter is the introduction,which introduces the research background,research significance,the research methods and research contents used,as well as the relevant overview of equity incentives and financial performance.The second chapter is a review of domestic and foreign literature,through the research of domestic and foreign literature,to provide a feasible basis for the follow-up research of this article.The third chapter puts forward research hypotheses on the basis of analyzing the principle of equity incentives influencing financial performance.The fourth chapter mainly introduces the research design of this paper,puts forward research hypotheses,and builds research models.The fifth chapter carries out empirical analysis,using descriptive statistical analysis,correlation analysis,multiple regression analysis and robustness analysis methods to analyze the results of various research variables and assumptions.The sixth chapter draws conclusions through empirical results.Through analysis,it is concluded that the implementation of equity incentives by listed private enterprises can improve the financial performance of enterprises.The intensity of equity incentives is positively correlated with the financial performance of private listed companies.The shareholding ratio of executives and the intensity of equity incentives have a negative adjustment effect on the financial performance of enterprises.Compared with non-technical enterprises,the shareholding of core technicians in technical enterprises is more conducive to the improvement of enterprise financial performance;Compared with the stock option model,he restricted stock model is more suitable for listed private enterprises.Equity concentration is positively correlated with financial performance.Based on the above conclusions,it puts forward suggestions for the further improvement of the implementation of equity incentives in listed private companies: first,encourage listed private companies to implement equity incentive plans;second,appropriately increase the intensity of equity incentives;third,pay attention to personnel training and other suggestions.