Research On The Equity Incentive And Corporate Investment Behavior

A long-term institutional arrangements of equity incentive mechanism as a solution to the company after the separation of two rights owners and operators of target is not consistent, the behavior incentive object through the influence, which affect the performance of the company. One of the most important investment behavior as the management decision-making, has had a significant impact on the performance of the company and its future development. But in our country, companies which implement equity incentive mechanism is not for a long time, the long-term performance has not yet fully apparent.This paper studies the effects of equity incentive plan on the company’s investment behavior, is the long-term development of a long-term performance to the behavior of the company through the research of the company to implement the equity incentive plan scheme management will pay attention to the company, to analyze the effectiveness of the equity incentive plan.This paper chose two of equity incentive plan of Shanghai Jahwa Abt Associates Incas the object of study, collected data from 2003 to 2012 ten years of investment in Shanghai Jahwa and related financial performance data, change with case analysis method to analysis of its investment in the implementation of two stock ownership incentive plan after the company behavior. Obtained through research: the design of effective equity incentive plan to expand the company’s scale of investment, improve investment efficiency of the company, and through the influence of investment behavior of the management and the company ’s financial performance have a beneficial effect.