Analysis Of The Influence Factors Of The Equitv Incentive Behavior And Level

In the modern enterprise system, ownership and management separation causes the principal-agent problem. Business owners through the implementation of equity incentive to alleviate the principal-agent problem between owners and managers. Equity incentives as an important part of a long-term management incentive system, in foreign listed companies in the development process of long-term, and achieved good results. Our equity incentive mechanism for the development time is relatively short, at the exploratory stage for a long time, mainly due to the provisions of the special institutional context and policy regulations.Until2006, China completed the listed companies tradable share reform, the relevant laws and regulations of the equity incentive systems supplement revision and improvement, and paved the way for China’s listed companies in the implementation of equity incentive. However, previous studies mostly concentrated in the equity incentive policy after the implementation of the impact on business performance, while the less equity incentive behavior and the impact factor of the level of equity incentive.The purpose of this study is the empirical analysis to identify the factors affecting acts of equity incentive and equity incentive levels listed manufacturing companies in China and make a reasonable expectation, in order to help work out a reasonable equity incentive programs listed companies according to their actual situation, which commissioned between managers and owners of our country to reduce agency costs, and improve the company’s enterprise value, but also provide a basis for hope that it will standardize and guide the equity incentive policy.The focus of this study is the impact factor of the acts of equity incentive and equity incentive levels, bulletin between2006to2010a total of169sample companies in the equity incentive programs listed manufacturing companies as the sample1, sample1according to certain criteria:1matching bulletin equity incentive programs listed manufacturing companies as a sample2,sample1and sample2for the total sample collected, prepared as.The total sample empirical study is to analyze the behavior of equity incentive factor, the total sample is to analyze the impact of equity incentive levels. This article was chosen manufacturing listed companies as samples, analysis of China’s equity incentive industry characteristics of listed manufacturing companies, the proportion of incentive stock options, with a certain representation.In this paper, a combination of specification and empirical research methods, the meaning of incentive stock options and related theoretical basis are described.This article based on the theory of principal-agent theory, the two-factor motivation theory, transaction cost theory, human capital theory and team production theory. This study is a departure from the perspective of principal-agent theory, a more comprehensive consideration of company size, level of risk, growth, profitability, the largest shareholder stake and corporate liabilities,and taking into the company’s liquidity constraints.as the factor of the incentive stock options.On the basis of previous research This paper proposes the associated assumptions on the relationship between the impact of various factors and equity incentive behavior,the level of the assumption.then use the descriptive statistical analysis, correlation analysis and regression analysis to provide further evidence for the assumptions, and truly gets the relationship between the impact of various factors and equity incentive behavior,the level of the assumption.After the study,in our considered various factors, we found there was a significant positive correlation between the company’s profitability, growth and equity incentive behavior,but there was a significant negative correlation between the proportion of the largest shareholders and equity incentive behavior.And company size, the level of risk, free cash flow and the extent of the liabilities were not significant.Study the level of equity incentive factors affecting the regression results show that there was a significant negative correlation between the size of the company’s assets, free cash flow, the extent of the liabilities,the largest shareholder stake and the level of equity incentive. Company profitability and equity incentive levers was a significant positive correlation.and there was no relationship between the levels of incentives and the company’s growth, the level of risk This study also has some limitations, First, the sample size is not large, Second,the factors to be considered comprehensive, but not all consider,Last,the entire study of this paper is mainly concentrated in the choice and level of equity incentive behavior,but it did not examine the performance of equity incentive. We need continuous improvement in the subsequent empirical research.Assumptions presented in this paper is inconsistent with our empirical results.Because of ou special institutional background and Imperfect mechanism. There is no unified conclusions.in our previous studies.Finally, we give the relevant policy recommendations for China’s equity incentive mechanism:First, improve the equity incentive laws and legal system, and continuous develop China’s capital securities market. Second, improve the company’s equity incentive performance appraisal system. Thfrd,optimize the institutions of governance,strengthen the supervision and management.