Research On The Effect Of The Change Of Stock Incentive Mode Of High - Tech Listed Companies In China

As an effective tool to solve the principal-agent problem, stock option incentive is the long term incentive way to stabilize the leadership team and key technical staffs. Compared with western countries, our country the development of the equity option incentive lags behind. In recent years, the development of China’s securities market is very rapid, more and more companies favor this stock option incentive, especially high-tech enterprises. Companies want to mobilize the employees through equity incentives, then they can create better performance for the company. With the development of stock option incentive, how to choose appropriate stock option incentive modes already become the problem many listed company shows. In the companies which have already announced the equity incentive plan, there are 354 high-tech companies, it accounted for a significant proportion. Most companies announced the equity incentive plan for only one time, about 10.5% of the high-tech companies have announced it for two times during different period, and in these companies, some announced the same pattern twice, while others changed it. This begs the question: whether the incentive pattern changing will have different effect for the companies’ market reaction and results of operations? Should high-tech enterprises change the incentive pattern, and which pattern is more conductive to the companies’ development? These questions are worth exploring. Based on the macro environment, the paper will study the issues that the economic effects of the incentive pattern changing of the high-tech listed companies.This paper means to reveal that if the incentive pattern changing and how to choose the incentive pattern are better for China’s high-tech companies’ development. After the announcement of equity incentive plan, which factors affect the companies’ economic effects and made it worse. These problems need to be studied and it is useful to the high-tech companies which want to announce the second equity incentive.First, after concluding the coming-out and development of the stock incentive plan and reviewing the research of Principal-agent Theory and Human capital Theory, this paper analyzes the motivation and the status quo of those which applied the incentive plan, and also analyzes the applicability of different types of equity incentive patterns. Then selecting 37 high-tech companies as the paper’s samples and this paper concludes that market prefers the signal that equity incentive pattern is changed. Equity incentive pattern changed and choosing stock option pattern will produce an effective role in promoting the business performance and market reaction. Finally, comparing and analyzing two cases that “YONYOU Company changing the equity incentive pattern” and “HIND Company not changing the equity incentive pattern” and results also verified the above empirical conclusions.Results of this study will help to some extent, the high-tech listed company again after the implementation of equity incentive plan has some reference to provide reference for improving the implementation of the effect of the equity incentive plan,Even though the study of this paper will be helpful to high-tech listed companies considering the second equity incentive plan, limited by personal capability and obtainable resource, the research incentive pattern changing and economic effect of high-tech listed companies is quite preliminary. There are certain insufficient such as a limited number of samples, then the studies may be not so accurate, the effect mechanism needs more explore. A better research line is needed in further study to study more valuable results.