Study On The Status Quo Of Implementation And Effect Of Equity Incentive In Chinese Listed Companies

From the revolution of the share distribution in2005, a serial of laws and policies focusing on regulating the company equity incentive are released successively. Until the end of2008the policies on company equity incentive are relatively well-established. In light of this, listed companies have showed great interest in salary incentive of this type since2009. Equity incentive reaches its peak among A-share listed companies, and generally performs properties different from those before.With regard to this, this thesis will focus on illustrating new properties and problems in practice through analyzing A-shared listed companies which announced their equity incentive drafts during2009～2011as well as the drafts, thereby enhancing listed companies’comprehensive and objective acknowledge on equity incentive. Moreover, the relation between companies’financial performance and the elements of incentive drafts will be further explored in the thesis, aiming at helping companies design a more reasonable and better-established incentive scheme with respect to the companies themselves, and finally realized idealized effect from stock awards. Following this kernel, I construct the thesis with six sections.First part is introduction, where we will concisely introduce background and sense, then review and evaluate the art of state in both domestic and abroad. The review on domestic bibliography mainly concentrates on the application of equity incentive in our country and the relationship between it and the performance of companies. For the reason that the current situation abroad is beyond the scope of this thesis, I mainly focus on classic bibliography abroad on the relationship between equity incentive and the performance of companies, which mean to form an objective knowledge of the probability results derived from the equity incentive to Chinese companies. Then, the construct and arrangement will be outlined followed by the innovations.In the second section, the theory on equity incentive will be detailed, such as the basic concepts on equity incentive, fundamental theory for equity incentive, the essences of equity incentive essences (mode, subject, size, condition for executive and granting, prices for executive and granting, etc).In the third section, the status quo of implementation in Chinese listed incentive is presented and analyzed. The section is divided into two aspects, viz the background analysis for policy, and the status quo analysis for implementation. The background analysis focuses on the general environment of policy for equity incentive on Chinese companies. The status quo analysis for implementation expands in two aspects:general situation and situation on scheme design.In the fourth section, the effect of incentive in Chinese listed incentive is analyzed, including longitudinal regression analysis and empirical analysis.In the fifth section, I will analyze the relation between essences and companies’financial performance. In detail, four essences are chose, the incentive size, available period, mode, and prices for executive and granting.In the last section, conclusions, suggestions and deficiencies of the thesis will be pointed out.