The Research On The Effectiveness Of Equity Incentive In China’s Private Listed Company

Since entering the21st century, the development and the rise of China’s listed companies havebeen faced with many challenges, which is particularly urgent need to solve the three problems isthe agency problems, personnel issues, the transfer of the management rights issues. In this case,from the end of the20th century, China began to be introduced from foreign equity incentivesystem for the long-term incentive designed to draw foreign management experience, to ease thethree major problems Chinese enterprises common. Implementation of equity incentive can achievethe goal of principal and agent are consistent, the interests of consistency in planning seniormanagers in the company, to make decisions, they can get rid of may focus only on the short-terminterests and ignore the long-term development goals. In recent years, Chinese enterprises havemore and more attention to equity incentives in business management, especially as more and moreprivate enterprises to join the ranks of the implementation of equity incentive, domestic scholarsstudy the effectiveness of equity incentive also gradually be attention.In this paper, the effectiveness of China’s private listed company equity incentive, the first tomake a detailed review and summarize regard to the relationship between the equity incentive andcorporate performance both at home and abroad, as well as equity incentive effectiveness research,and then from2007to2011screening period of54private listed company equity incentive into theimplementation phase, as a sample, and select the ROE as a measure of the degree of effectivenessindicators, the study proposed three hypotheses, respectively, bydata analysis performance changesbefore and after the implementation of equity incentive of private listed companies, state-ownedlisted companies, private listed companies relative to equity incentive validity, the relationshipbetween the level of corporate performance last through empirical studies equity incentive ofChina’s private listed company equity incentive sexual conduct research Alpha. Through empiricalresearch, we draw the following conclusions: China’s private listed corporation stock incentivelevel corporate performance is positively related to the higher levels of equity incentive, the betterthe performance of the company; private listed corporation after the execution of stock incentiveperformance is superior to the execution of equity incentive before; private listed corporation in theexecution of stock incentive performance is superior to the state-owned listed corporation andprivate listed company stock incentive more effective than the state-owned listed corporation stockincentive validity. Therefore, to make equity incentive should give full play to the long-termincentives to improve the effectiveness of china’s listed corporation equity incentive, articles thelast empirical analysis of the effectiveness of equity incentive impact factors as well as China’s private listed company equity incentive, to enhance the the effectiveness of China’s private listedcompany equity incentive recommendations to effectively raise the level of performance of privatelisted companies in China.