Research On Equity Incentive Of Listed Companies In China’s IT Industry

Equity incentive can effectively promote the improvement of business performance, and have a positive effect on the long-term development. With the promulgation of "Provisional measures", many listed companies have launched different equity incentive program to stimulate managers to work hard to promote the improvement of performance. The improvement of the effectiveness of China’s capital market and new laws and regulations provide a good opportunity for the development of China’s listed with equity incentive.Based on the combination of related theories about incentive stock options and experience of foreign countries, this article analyses the current situations and macroscopic environment of China’s implementation of incentive stock options. At the same time, the paper investigates some specific conditions of China’s listed companies in the process of implementing the incentive. It thinks that it is very necessary to implement any equity incentive in China’s listed companies. But there are still many problems in the process of the implementation, including macro and micro. At the same time, this paper select listed companies of IT industry as samples to verify the incentive impact on performance of the sample companies. In order to ensure that the equity incentive can really play its role in the listed companies, the paper suggests that we should perfect inner structure of companies, cultivate professional market of managers, improve related laws and regulations, and improve the effectiveness of the capital markets and other macro aspects to ensure that the incentive can implement smoothly. At the same time, some measures should be taken in aspect of the determination of the target people, source of fund, design of the assessment indicators and determination of the amount of incentive. Hope that the research on the above problems can provide some help and experience for China’s listed companies of IT industry to launch equity incentive program.