Study On Listing Corporation To Terminate The Equity Incentive Plan Impact On Corporate Performance

Equity incentive started late in China, and it was the final confirmation in the sense oflaw since2006. And since the stock incentive plan in China, there are close to1/3of theenterprise to terminate the equity incentive plan. Then, what is the reason that makes theenterprise terminate the equity incentive, what kind of impact does the termination of equityincentive has on company performance, what is the relationship between the degree ofinfluence of related variables and termination of equity incentive?In this paper, terminate the equity incentive plan of the A shares of listing Corporationeffects on firm performance is the main research content, through the combination ofempirical research and normative research, quantitative analysis and qualitative analysis, Thestudy on the relevant variables for termination of equity incentive and the termination ofcompany performance influence added the content that equity incentive status of listingCorporation in China, conducive to a comprehensive and in-depth understanding of equityincentive status of listing Corporation in China at the present stage, and provide a theoreticalbasis and data support for our country to further standardize the equity incentive system. Thispaper defines the related concepts on the equity incentive firstly, and analyzes its theoreticalbasis. Then, according to the data and information in database of GuoTai’an and the hugeinflux of information network, choose66listing Corporation of A shares which terminate theequity incentive as the main study samples from2008to2010, and selected60successfulimplementation of equity incentive plan of the company as a contrast sample, throughmultiple linear regression model for empirical analysis, verify the effect of whether terminatethe equity incentive, termination reason, termination time on corporate performance, drawsthe following conclusion finally: one is termination of the equity incentive plan could reducethe companies’ performance; two is the different termination reason causes the differentperformance of equity incentive; three is that the different termination time could not causedifferent performance of equity incentive significantly.Through the empirical analysis and research, it shows that there are some problems in theinternal and external of the equity incentive of the listing Corporation in China. This paper further in the light of these problems, proposed design has characteristics of the company’sequity incentive plan, set reasonable corporate performance evaluation index, improve theequity incentive related laws and regulations, enhance the government policy suggestions tocontrol the macro market, provides the basis for further standardize the stock right incentivesystem.