An Empirical Study On The Impact Of China’s Listing Corporation Equity Incentive System On Enterprise Performance

Enhance corporate performance is reflected in corporate health and development, it is the goal of enterprise. With the expansion of business scale, the funders of a person in charge of the traditional management model of enterprises gradually evolved into independent ownership and management of the new management model. But this new management model also brings the interests of the operators and managers are not unified, managers even damage enterprises long-term performance because of their own short-term interests. In response to this phenomenon, equity incentive system as one of measures, help to reduce the agency costs, attract and retain top talent, enhance performance of both long-term and the short-term. But there is also some unreasonable situation such as executives speculative cash, stock manipulation and other damage business performance behavior problems. So study the relationship between equity incentive and corporate performance between the equity incentive system let us know how to avoid the negative effects and better improve business performance, it has important significance.This paper selects the implementation after the reform of non tradable shares from 2006 to 2013 listing Corporation as the research sample data, to compare the various performance between enterprises from the horizontal and vertical two aspects, the relationship between the model and the performance of the company’s incentive amount, an empirical test of the equity incentive for listing Corporation to enhance the performance and effect of equity incentive, draw the following conclusions: Firstly, the implementation of the overall equity incentive can improve enterprise performance; with the increase of the proportion of equity incentive, the corporate performance increase. Secondly, when the excitation ratio reached to 3%, the company performance will decrease with the increase of excitation, so the proportion of equity incentives and corporate performance relationship is nonlinear, the optimal equity incentive the ratio should be controlled between 0% to 3%; Thirdly, in several kinds of the equity incentive model in the enterprises, the use of stock options and the restricted stock two modes respectively occupy 51% and 47%, the stock appreciation rights and other incentives with relatively little or no. In the two main models, empirical test of stock options to be better than the effect of restricted stock.According to the above results, from the perfect information disclosure mechanism, promote managers market maturity, strengthen the performance appraisal system construction, widen the enterprise equity incentive grant suggestions range etc. Purpose is to better understand the relationship between equity incentive and corporate performance, specifically how to set up the equity incentive system and how to improve the enterprise internal and external environment in order to avoid the adverse effects of the implementation of equity incentive system caused by the improper performance of enterprises, improve enterprise performance and more effective, promote sustained and healthy development of enterprises.