Emerging Industries Listed Company Equity Incentive Mode Effect

In the1950s, the United States in the area of corporate incentive created a long-termincentives-equity incentive, followed by Italy, Britain and other developed countries，thatmade the global enterprise involved in the equity incentive wave, and then opened theWestern countries the prelude of implementation of equity incentive. Although equityincentive system has been developed for60years in the mature Western capital markets,but in our country the pace of development is so slow, until recent years, relatively wellafter the rapid development of China’s legal system and capital markets. Meanwhile,China’s government is promoting and developing new industries, emerging industries playsan important role in improving the productivity of the whole society, enhancing the overallnational strength, as well as promoting economic development. So, how the effect ofequity incentive of listed companies in emerging industries, and the different of theincentive effects of restricted stock and stock options, these issues are worth exploring.Based on the research results at home and abroad, and on the special institutionalbackground and the reality of the listed companies in the emerging industries, the paperempirical research in three main areas:(1) Compared of the effect of the company’s shareprice between the restricted stock and stock options before and after equity incentive planannouncement;(2) the empirical research for the performance of listed companies based onthe two excitation patterns;(3) two excitation pattern of empirical is how effect of thecompany’s growth. The empirical results show that,whether the equity incentive planannouncement affects the stock price, or the empirical study of the equity incentive impacton the performance of the company, and that the stock option incentive model are favoredby listed companies in emerging industries, it is better for the company’s stock price andthe performance, but the both of the incentive models do not play their due effect on thegrowth of companies. Although some listed companies, especially listed companiesemerging industries have established equity incentive system, and gradually diversifiedincentive model, but due to our equity incentive system is in the exploratory stage, therelevant legal system is not perfect, the capital market is not perfect, the governancestructure of the company is not complete, so the equity incentive model for emergingindustries listed companies need relevant government departments, social masses, as wellas the listed companies jointly to improve.