The Effects Of Equity Incentives For Corporate Performance

With the reform of China’s shareholding,as well as the equity incentive system and employee stock ownership plan gradually being paid attention,more and more companies in China implement equity incentive system.According to the previous research experience,equity incentive has a significant effect on the performance of enterprises.While the manufacturing industry is an important industry around the national economy,so the study of manufacturing that implement equity incentive for improving China’s manufacturing business and corporate governance is of great significance.With China’s increasing investment in innovation and R&D,more and more high-tech companies join the ranks of equity incentive plan.The previous literature less comparative high-tech manufacturing and traditional manufacturing equity incentive effect,so this paper mainly research the impact of equity incentive on the performance of enterprisesf or high-tech manufacturing and traditional manufacturing.And this paper will comparative study to explore the reasons for the difference between the two incentives.Based on the case study(Zhengtaidianqi and Black Cow),this paper compares the two companies’ equity incentive effect to lay the foundation for the following empirical Than,based on the data of manufacturing listed companies from 2012 to 2015,this paper makes an empirical study on the effect of equity incentive of listed companies on the performance of the company,and examines the ownership concentration,the proportion of executives,the growth,the risk,the scale of assets and the enterprises of these influencing factors.The empirical results show that the implementation of equity incentive has a positive effect on improving corporate performance.Whether it is high-tech manufacturing industry or traditional manufacturing industry,the implementation of equity incentive can improve the performance of enterprises,and with the increase in the proportion of executives to enhance the performance of enterprises stronger.In addition,the high-tech manufacturing industry to implement equity incentive than the implementation of traditional manufacturing effect is better.Moreover,this paper finds the concentration of equity is smaller,the risk is higher,the proportion of executives holdings is higher,the growth of enterprises is better for the companies that implement equity incentives,more incentive management work to improve the corporate value of listed companies.Finally,according to the empirical test results of this paper,the relevant policy suggestions are put forward,which is of great significance to how the high-tech manufacturing industry and the traditional manufacturing industry can use their own advantages to solve their own problems and make more effective ways to improve the performance of the company through equity incentive.