Analysis Of The Equity Incentive Effect And Influencing Factors Of Listed Companies

Corporate governance practices and modern corporation theories in western countries have proved that equity incentive, as an important corporate governance mechanism, can effectively solve the agency problem and achieve the goal of long-term incentive. More and more enterprises carry out equity incentives. Until the year of 2014, a total 682 A-share listed companies raised equity incentive. But from the evidence of corporate practice and empirical studies, not all of companies using the equity incentives have achieved good results. Therefore, in this paper, the effect of equity incentive and its influencing factors were analyzed and discussed has a certain significance.In this paper, case studies method is used. This paper analyzes the mechanism of how factors affect the equity incentive. This article selects a listed company which has completed the equity incentive as the research object, the analysis of the case to conduct a comprehensive evaluation to study the long-term effects of equity incentive,mainly using the financial indicators and the market reaction to evaluate the company's performance. Analysis the influence factors of affecting the listed company equity incentive, highlight the equity incentive contract organization factors impact on equity incentive effect. In this paper, there are five parts: the first part is the introduction: this paper research background and significance, the research methods.The second part of the relevant literature review, is the study of equity incentive to comb. The third part introduces the basic theory of equity incentive, equity incentive effect and the mechanism of action of influencing factors. The fourth part is case analysis part, analysis of Hisense electric equity incentive effect. The fifth part is the conclusions and recommendations.This paper argues that the implementation of equity incentive to improve the performance of listed companies, but the incentive effect is affected by the internal and external environment of enterprises. At the same time, the rationality of the equity incentive contract elements will also impact on equity incentive effect. Equity Incentive of Listed Companies currently still in the development stage, the company's performance effectiveness research has yet to be enriched and improved.In order tomake long-term incentive effects of equity incentive can be fully play its due role, the paper from the equity incentive program design, internal corporate governance angles made recommendations.