Research On Influence Factors And Selective Tendency Of Management Equity Incentives

As the development of the modern firm theory, management equity incentive plan had become a solution for the principal-agency problem. Through improving the corporate governance structure and management initiative, and reducing agency cost, the equity incentives make manager's interests in line with stock owners. In China, many companies are putting the equity incentives in practice after stock share reform.This article is going to discuss the influence factors and selective tendency of management equity incentives from the beginning reason. There are two parts:First, researching on the total characters and plans' characters; Second, making the Logistic regression on sample C after pairing, then find the influence factors to the selective tendency of equity incentives, forecasting the selective probability of choosing equity incentives.There are some conclusions after empirical analysis:The lower company risk, the more selective tendency; Private company like equity incentives than stated-owner company; The bigger scale, the more selective tendency; The higher shareholding of institutional investors, the more selective tendency; free cash flow need more selective tendency.The main contribution of this article is:Different with the former researches on old data, this article makes a new sample and analyze more completely.