Research On Equity Incentive Effect Of Listed Company Under The Shareholder Structure Reform

Performing the equity incentive plan onto the management of listed companies has always been at controversy seriously. At all times and in all over the world, this debate has not yet gone to be of one opinion. Since reform of the shareholder structure of listed companies carried into execution in China, the listed companies had implemented a series of incentive measures in droves. However, the incentive impact is good or bad, it is whether suit to the condition of that our company facing at the present stage, what issues will exist in the implementation process, which measures should be taken to achieve better results, etc. These urgent issues need to be investigated further and deeply.This paper studies the equity incentive effects of the implementation of domestic and foreign enterprise, analyzes the theory of equity incentive, and discusses the core issues that the effects and measurement of equity incentive plan onto the internal management intensively. By analyzing statistical data from 2006 to 2009 of listed companies and using empirical research methods, we studies stockholder's rights concentration degree, capital stock structure, relationship between the proportion of the management own stocks and the company achievements via correlation and regression analysis separately. Draw the conclusion, there was no significant correlation between the proportion of the management own stocks and the company achievements. Ownership structure type has gradually change to the moderate concentration whereas highly concentrated previously, the company continues to expand in size, the enterprise achievements rise unceasingly, and the capital stock structure has realized the entire circulation whereas state-owned shares in dominance during the share-trading period. However, the implementation of equity incentive plan has strong differences between various industries. For instance, high-tech and intelligence service industries to implement the equity incentive plan are far more than the traditional monopoly resources and capital-intensive industries. Therefore, we put forward some suggestions to improve the implementation of equity incentive plan, including improvement of enterprise's internal environment and optimization of the external market environment. We take some measures to improve the internal environment, i.e. optimizing stockholder's rights structure, diversification of investment, improving the corporate governance structure, creating an effective manager market, strengthening the independence of the boards of directors, establishing a scientific system of performance appraisal and designing appropriate equity incentive mechanisms for different industries. To optimize the external market environment by means of speeding up the construction of the capital market, standardization of the stock price and establishing the sound legal basis. Compared with current research achievements, this dissertation views the issue from a novel perspective. Not only do research on the internal mechanism principle of equity incentive, but also concentrate on regulatory environments for it to exert its function. The conclusion is unique, viz. the implementation of equity incentive plan has strong differences between the various industries. Investigate into the listed companies with implementation of equity incentive plan in the new context after reform of non-tradable shares. We obtain some breakthrough in aforementioned three aspects, and it is worthy for listed companies to use for reference in practice and theoretical research.