Empirical Reseaarch On Relation Between Comprehensive Performance And Equity Incentive Of The Listed Companies In Our Country

Equity incentive is an incentive method to solve the problem between shareholders and operator .It include performance stock, stock options, defer payment and so on. In the early time, mainly taken the performance of stock's model that is very effective in improving the U.S. company's operating performance. But in the later time, most companies in the United States to better motivate the company's managers to take a stock option incentive model. However, practice proved this model's incentive effect is not obvious. Abuse of equity incentive, which set off the problem of people's argument. The empirical results show that between executives for the proportion of shares and the performance of listed companies there is a positive correlation. Associated with the equity incentive policies and regulations are still inadequate, the listed company's equity incentives also have many problems. What is the actual results. Which model is more effective. What problems still exist in the practice. This paper mainly concern these issues.In this paper, we use theoretical analysis and empirical analysis to study the relationship between equity incentives and performance of listed companies. Mainly use agency theory to study equity incentive's effective and hypotheses proposed. This paper select 126 companies in China's manufacturing industry as the sample. This paper use descriptive statistics and regression analysis to study the relationship between different equity incentive model and company's performance. The results show that, our equity incentive of the listed companies have positively relationship to the company's performance. The largest shareholder's equity ratio was significantly negative incentive effects. Proportion of independent directors is positively related to equity incentive effects.But the result is not significant, because the independent directors of listed companies in China have not been able to play its role.Finally, based on the conclusions put forward policy recommendations related to improving equity incentives.This paper have five chapters. In the first part we have a comprehensive review of the literature in this field, in the second part is concerned with equity for an overview of the theory, The third part of equity and encourage the practice of the analysis, the fourth part of the motivation for equity and the company's performance in the paper, the fifth part of the conclusions and recommendations.