Empirical Study On Effects Of Equity Incentives In Chinese Listed Companies

Equity incentives is a long-term incentives which in order to reduce agency costs,improve operational efficiency and increase the value of companies.Western companies use this tool to obtain equity incentive a great success. By contrast, China's listed companies in the implementation of stock-based incentive lags behind the development. The use of stock-based incentives is still in trial and error stage. Therefore, the study of the use of equity incentives on corporate performance in listed companies exactly will have a great significance.Based on the article discusses in detail the background and significance of thesis research, the article reviews the study of the equity incentives in domestic and foreign research. And the article has a detailed analysis of equity incentives related concepts and basic theories.Then the third chapter analyzes the current status of equity incentives:the main distribution from industry, business type, incentive model,the stock source, the proportion of exercise motivation and other aspects of validity are discussed in detail.All of these is good for the empirical study below.The fourth part is the empirical study, and it is also the focus of this article. In this paper, it chooses 81 listed companies as samples from 2006 to 2009.In the empirical study, it uses SPSS17.0 software. And then it has a related analysis and a regression analysis on the sample companies. It gets the conclusions from the regression results as follows:the proportion of equity incentives is positively correlated with the companies' performance; the proportion of the largest shareholder's is negatively correlated with the corporate performance; the proportion of total shares that the top ten shareholders have is positively correlated with corporate performance; the debt rate is negatively correlated with the corporate performance; the total assets is positively correlated with corporate performance.The last chapter of this paper, it summarizes the full paper, and it also presents to perfect our equity incentives mechanism. And it gets conclusion:The implementation of our equity incentives to improve companies'performance is effective. Lastly, in the fifth chapter it presents lots of proposals about improving the internal condition and external environment of equity incentives in Chinese listed companies.