Listed Company Executives' Equity Incentives And Company Performance Studies

The basic target of the management of listed company is maximize the shareholder's wealth,but in listed company the shareholder of proprietor and operators will entrust each-other because of the inconformity,information dissymmetry and responsibility risk inconformity with target benefits-acts, so obstruct the target being come-out.There request a kind of mechanism to stimulate the operators to sets an excellent accomplishment from the self interest.Operators ownership of a share in the listed company's is a effectively methods to solve this kind of to entrust-act for this sell-contradict mechanism,give operators ownership of a share,will having the stock price of listed company to put together with operators' acquisition guerdon,urging operators take their management ability mostly, create more wealth for the shareholder.Although listed companies in China from the late 1990s began to explore equity incentives,but because of our system and environment factors,the implementation encountered many obstacles.In May,2005,along with our country ownership of a share cent and emendation of laws such as《company law》,《stock certificate method》etc.The incentive system environment of the listed company ownership of a share got to improve more and greatly.Company capital system,system of stock return buy and the law of manager holding the post transfers stock when they on duty have breakthrough,the obstacle has remove.On January 4,2006,the Chinese certificate law of《the management of listed company stock right stimulates》,allow company which have already completed an cent of ownership of a share to place the implement ownership of a share, build up sound encourage and a control mechanism to promote listed company to operation and develop continuously.Those new system and situations all provided a good development opportunity for the development of our country listed company ownership of a share incentive system.The first chapter of this paper introduced equity incentives and the implementation significance of the concept- will allow operators to achieve incremental wealth of the remaining cable;enabling operators to pay more attention to their own enterprises,as well as the long-term interests of the operator to rectify the risk of such preferences.Further equity incentives introduced the basis theoretical-principal-agent theory and the human capital theory.The research of abroad mainly hold a comparison that the relation between the company performance and the stock option is line related or not line related 2.But the local scholar's research expresses an obvious opposition as a result,someone reviews the stock option and listed company performance is not related,others reviews they are obvious relativity.The second chapter research used equity incentive mode in China since 1990s.Including virtual stock encourage mode,accomplishment stock encourage mode,stock option encourage mode,stock to increase in value power encourage mode,holdover to pay mode and an option of the compound encourage mode,given case research to every mode's operation in the listed company each time, example the operation method.Implement process,attain of encourage result and existent shortage in every models.And analyzed by individual case the operation,the improvement and meaning which complete the reform of cent an ownership.How the incentive mechanism encourages operators in work effect.Contrast the relation between list company performance and equality incentive before ownership of a share to place reform for cent and after it,summary the new characteristics of our country list company after ownership of a share the cent place reform.ChapterⅢhas been selected to complete share reform and the implementation of incentive shares listed 45 listed companies in the three years 2005,2006 data,a related assumptions used to the annual time series for the longitudinal comparative law and multiple regression analysis Positive Analysis of the shares of listed companies and encourage the relationship between the performance of the company and found that equity incentives to improve the performance of listed companies have an obvious role.The results showed that:1.The high the executives of listed companies equity ratio,the better the performance of listed companies,namely,the equity ratio of listed company executives and companies operating performance was direct proportion relations.2 Different industries equity incentive effects of different,even among some sectors there is a huge difference.3 Different equity incentive models effects different.Compared with restricted stock incentive model,the effect of option incentive model is better.ChapterⅣis the conclusion of the study,reviews proposals on the basis of China will implement a listed company executive equity incentive:1 Enlargements used for the share that the high tube ownership of a share encourages to have the comparison quota of the company total subscribed capital.2.In some in keeping with carry on the profession that the high tube ownership of a share encourages,the enlargement promotes the strength that the ownership of a share encourages.3 Different equity incentive model has different effect,adoption options encourage model is better than restricted stock incentive model.The main innovation of this paper is to study the shares of incentive and the correlation between the performances of companies to the new environment after the shares under the system,the data used for the shares to the listed company data.The results have some reference for the implementation of China's equity incentive plan listed companies in the design of incentive program.