Research On Equity Incentive Effect Of China’s Listed Companies

The management equity incentive has long been considered an effective way to solve thecommissioned-agent relationship, so the stock ownership incentive in our country in recentyears has caused a "boom". Especially in2006, the China securities regulatory commissionpromulgated the equity of listed companies incentive management approach (trial)", since thestock ownership incentive in our country began to regulate, and continuous equity incentive oflisted companies promulgated laws and regulations in China, more and more strict to therequirement of equity incentive, equity incentive effect is obvious in our country has changed.2010is the "gold window" of equity incentive, implementation of equity incentive of listedcompanies flourished, in2011and2012showed a surge in the situation. So for the further studyof equity incentive is necessary.This article comprehensive reviewed in domestic and foreign research results related toequity incentive, elaborates the related theory of equity incentive, then do empirical research onthe equity incentive. this article mainly analyses the equity incentive effect from two aspects,one is vertical line description statistical analysis, the sample is divided into general descriptivestatistical analysis and descriptive statistical analysis, the overall level of the equity incentiveeffect and industry level are studied, the second is to gather the section data of multivariate linearregression analysis, this article selects two indicators return on equity and earnings per share tomeasure company performance, management equity percentage as equity incentive level, inorder to better analyze the effect of equity incentive, this article selects a number of controlvariables, ruled out the interference factors of equity incentive effect. Research conclusion:equity incentive can improve corporate performance, is a positive correlation between them, butdidn’t pass the test of significance level, equity incentive is not significantly positive correlationwith corporate performance, company size, growth, and other control variables through the T test.The main reason is that our country listed company corporate governance structure, laws andregulations and the imperfect capital market. Finally puts forward Suggestions for theimprovement effect of equity incentive in our country, from two aspects of optimizing theexternal environment and internal environment put forward Suggestions for improvement,optimize the external environment including improve the equity incentive related laws,regulations and capital markets; Internal environment including improve the corporategovernance and the performance appraisal system.