Study Of The Influence On The Enterprise Investment Performance Of Equity Incentive Of Electronic Information Industry In China

As a long-term effective incentive mechanism, equity incentive mechanism intends to improve the administrators’ initiative, to promote the sustainable development of the company. At this stage, of all the companies which implement the equity incentive, electronic information industry is even in the second place. The reason is that the industry with high investment, high risk, short life cycle and so on.Investment is a major event in the process of companies’ strategic management. And its executives have greater discretion in the process of decision-making investment authority. However, low efficiency of investment situations will appear, because of the information asymmetry and other reasons. The implement of equity incentive make senior managements take some risks at the time of sharing benefits, so that they can choose some investment policies, which are in favor of company’s long-term interests, besides, making company’s performance maintain steady and rapid growth in the long term.At this stage, the study of equity incentive, empirical research methods are mostly adopted, to study the effect of equity incentive on earnings management and the relationships between the equity incentive and company’s performance. But the research of the influence of the equity incentive to the company’s performance areless related. Therefore, the paper is mainly adopted the method of case study, using the research results of scholars at home or abroad, to do some analyses, of which the implementation of equity incentive have effect on the performance of investment, in order that some causes of performance differences can be found, and some plans, which is better for our enterprise to implement equity incentive plan can be proposed.The paper studies the electronic information industry, listed corporations, Yongyou and Nantian two representative enterprises as the research objects. By using qualitative and quantitative analysis, it studies the implementation of incentive, having influences on business investment performance. The research results indicate that: the implementation of equity incentive plan can improve low efficiency of corporation investment, the blind expansion of investment scale and other current situations of poor investment performance; and the differences of equity incentive plans, such as incentive patterns,incentive object, incentive stock quantity and performance conditions also affect the investment performance of enterprises. According to research findings, this paper presents some recommendations like this:companies should make equity incentive plan design reasonable, and the internal supervision mechanism more perfect. Our country should take active measures to improve the effectiveness of the capitalmarkets, and strengthen intermediaries rights and responsibilities,and strive to develop institutional investors.