The Study On The Effect Of The Equity Incentive Of Listed Companies

In 1993, China's first equity incentive plan by the Shenzhen Vanke Group tried to implement, but the results are unsatisfactory. After the reform of the share-trading reform in 2005, the problem of institutional barriers in our country has been solved,and the role of equity incentive in modem corporate governance has been constantly emerging. According to statistics, in 2016 a total of 249 companies in China implemented equity incentive program, of which 59 use of stock option incentive, 187 use of restricted stock incentives, there are four use of stock appreciation rights to equity incentives. But we must also realize that the current immature capital market in China, the institutional environment and the degree of economic development and other factors will still bring some uncertainty about the incentive effect of equity. So now we need to do is from the perspective of the company to start a more detailed study of equity incentives to the impact of modern companies.Based on the above purposes,this paper absorbs the research results of domestic and foreign scholars, using theoretical and empirical analysis of the combination of research methods to domestic and overseas enterprises in 2006-2015 to implement equity incentive for listed companies as the object of study, The company's performance effect, talent effect and innovation effect of three dimensions of comparative analysis. The whole paper is divided into five parts: The first chapter introduces the historical background of equity incentive, and summarizes the relevant literatures at home and abroad, and puts forward the basic research ideas. The second chapter defines the concepts related to equity incentive, such as incentive mode,incentive effect, and then from the theoretical aspects to introduce the basic analysis of China's equity incentive. The third chapter analyzes the status quo of equity incentive in our country, and compares the two kinds of equity incentive methods, stock options and restricted stock, which are mainly used by Chinese listed companies, from the rights and obligations, the concrete implementation and so on. The fourth chapter is the empirical study on the effect of equity incentive of listed companies in China from the three dimensions of performance effect, talent effect and innovation effect, and then further studies whether there are significant differences in the incentive effect of different incentives. Chapter 5 summarizes the conclusions and puts forward policy recommendations.Through the above theoretical research and empirical analysis, the following conclusions are drawn: (1) In the research on the incentive performance of the company, it is found that the incentive intensity of the stock has a positive effect on the performance of the company, that is to say, the implementation of equity incentive can improve the performance level; At the same time, the effect of different equity incentive on the performance of listed companies is significantly different,because the incentive to work hard on the management of the effect is indeed better, if the stock price is lower than the implementation price, the management of stock options can not get the proceeds, More than the implementation of the price, the right to make sense,so the management for their own interests must work hard to enhance the company's performance, to promote stock prices. (2) In the research on the talent effect of the company, it was found that the executive incentive rate of listed companies was significantly negatively correlated with the incentive intensity of the listed companies,which means that the equity incentive plan could help the enterprises to retain their talents. In the further research, Found that restrictive stocks play a bigger role in this regard than stock options. (3) In the research on the incentive research of the company innovation, it is found that the equity incentive can effectively improve the innovation ability of the enterprise. The equity incentive can combine the managers and the owner's interests to promote the long-term development of the enterprise The investment in innovation and stock options and restricted stocks to promote the ability to enhance the innovation of enterprises there are significant differences, including restrictive stock performance is better than stock options.The main innovation of this paper lies in the empirical part: (1) This paper changes the concept of large and complete equity incentive in many previous literatures, broadens the perspective of equity incentive, whether it can improve the performance of the company from the equity incentive plan To retain the talent and to promote the company's innovation three dimensions of the empirical analysis in order to better study and observe the current implementation of China's listed companies equity incentive plan effect.(2) Further analysis of the differences in the way of the two different equity incentives, not only their impact on corporate performance, but also whether they contribute to the retention of talent and corporate innovation differences The impact also carried out a concrete comparative empirical study.In view of the above results, this paper puts forward some suggestions on how to encourage the listed companies to implement the incentive plan, establish the scientific performance evaluation system, rationally design the equity incentive plan and perfect the external environment of the equity incentive. The purpose is to understand the relationship between equity incentive system and the specific relationship between enterprises, how to set up the equity incentive system and how to improve the internal and external environment to avoid the improper implementation of equity incentive system on the adverse effects of enterprises, so as to more effectively improve business performance, Innovation and the attractiveness of talent, to promote the healthy and sustainable development of enterprises.