The Study On The Relation Of The Stock-based Incentive And Corporate Performance In Our Listed Companies

In the modern enterprise system, the separation of ownership and management rights of enterprises, resulting in a principal-agent relationship. Business owners retain residual claims, not directly involved in the daily management of the enterprise, the management rights transfer to professional managers. This special relationship has led to inconsistencies between the interests of the target company owners and company managers Issue. To solve this kind of problem, in the1950s the United States was first proposed equity incentive system and begin implementation. Our equity incentive late start, the course is short, and the maturity and the system is not easy, the implementation of far western economic environment affected more market conditions, as well as the direction of the constraints of the legal status of national policy boot. Although our country’s macroeconomic environment continues to improve, but the ownership structure and governance structure of listed companies to be improved, especially the state-owned holding company of the agency cost problem of high prevalence.Equity incentive system as a solution to the long-term goal of the interests of business operators and owners to resolve inconsistencies important way to get the form by making equity managers, giving managers a certain degree of economic rights, to enable them to participate as shareholders in corporate decision-making, share gains, risks, so that managers can dutifully for the long-term development. Revenue sharing, target the interests of business operators and owners to maximize consistent, while public risk in a certain way, which prevents the operator’s short-term economic behavior to some extent, prevent due to the company managers and all company managers harm the interests of the owner of the information asymmetry between the behavior caused.At present, China’s capital market is in a period of institution building, executives of listed companies equity incentive system, as the most important long-term incentives have been put on the agenda, our company has become promoting improved governance structure, and promote China’s capital market and the sustained and healthy development of national economy one of the important mechanisms. Over the years, our company’s executive compensation structure is irrational, there is no long-term incentive compensation and performance-linked, not only lead to insufficient incentives for company executives, some enterprises,"59-year-old phenomenon", but also led to domestic capital markets and other mature capital markets at a disadvantage in attracting the listed resources.January6,2006issued "shares of listed companies incentive management approach"(Trial), pointed out that the reform has been completed tradable listed companies, equity incentives can be implemented in accordance with the requirements of this approach, establish and improve the incentive and restraint mechanisms. This is China’s listed companies raised equity incentive reform policy guidance to listed companies in China equity incentive reforms possible. However, the relationship between China’s listed companies equity incentive and corporate performance how and whether the presence of a moderate proportion of equity incentives, these problems there is currently no good research carried out in our country, therefore, the current study the relationship between the equity incentive and performance of listed companies has a very important practical significance.This paper is divided into four parts on the logical relationship. The first part is an introduction, describing the background of incentive stock options, equity incentive mechanism to explain the significance and literature review study abroad; respectively, from the second part of the concept of the concept of incentives, incentive stock options, features, objects, compare their advantages and disadvantages of different modes, aspects of the theoretical basis and theoretical results and other equity incentive equity incentive elaborate theory; third part empirical research; fourth part is the conclusion of the analysis and study of the limitations of the author’s thesis. Among them, the empirical part of the implementation of equity incentive mechanism chosen, in Shanghai and Shenzhen Stock Exchange listed company, and released the first implementation of the announcement date as samples in2010-2012between to between2010to2012annual reports of listed companies three years of data for the main object of research and analysis, while excluding the following companies:①incomplete data listed companies;②stock for ST listed companies;③financial indicators of abnormal data listed companies. After screening, a total collected between2010to2012a total of244listed companies in three years. Of which193in the Shenzhen Stock Exchange,51on the Shanghai Stock Exchange, After the financial classify, and then find the common factor means of factor analysis, according to the proportion of the various common factors to explain, obtained composite score is calculated function P’s. Finally, P score, as a comprehensive measure of corporate performance value. By the aid of P’s analysis, the performance of listed companies and equity incentive overall regression correlation implementation.According to the actual situation of listed companies, evaluating the aggregative indicator measures with the value of the enterprise, to examine the specific effects of the company’s equity incentive mechanism. This is to improve the company’s external environment, improve the internal governance of listed companies as well as the future implementation of equity incentive system has major implications.