Research On The Relationship Between Equity Incentive And Corporate Performance Of High Tech Listed Companies

Equity incentive is a sign of equity incentive mechanism to achieve standardization and institutionalization.Equity incentive is an important incentive mechanism of listed companies to stimulate and constrain management layer and to solve the agency problem.And it is useful to help enterprises to accumulate human capital,improve the management level and achieve the long-term stable growth of enterprise performance.Therefore,this paper choose high-tech listed companies from 2011 to 2015 as research samples,making two factors of the equity incentive conduction characteristics and external factors as the breakthrough point,to explore the relationship between the mechanism of equity incentive and corporate performance of high-tech listed companies.The paper uses generalized least squares GLS,fixed and random effects model,LR and Hausman test and simultaneous linear equation to relate factors affecting the test on the relationship between equity incentive and corporate performance.The results are as follows:(1)The effects of equity incentive characteristics on equity incentive and firm performanceThe equity incentive doesn’t have a significant positive influence on enterprise performance overall,and the contract design is positively related to the relationship of the two.It is the basic factor to the enterprises in the implementation of equity incentive mechanism of the success and the motivation,and incentive contract design method plays a key role.Incentive motivation has a positive impact on the relationship between equity incentive and corporate performance.Stock options and restricted stock due to differences in the basic characteristics,have different incentive effects.And for the high-tech enterprises,the use of stock options has certain inhibition to the equity incentive effects.Restricted stock presents to replace stock option incentives as the preferred trend.(2)The influences of exogenous factors on equity incentive and firm performanceThe affect between equity incentive and investment level is interactive,and managers with selfish acts have influence on this relationship,which has the specific performance of a significant positive correlation between the equity incentive and investment level,and the management fee rate and equity incentive interaction with investment level showed a negative correlation of less significant.It shows thatmanagement self-interest behavior will weaken the incentive effects of equity incentive in a certain extent.The human capital cost has a negative effect with less significant on the relationship between equity incentive and corporate performance.There is a significant positive correlation between R&D investment and firm performance,which indicates that R&D investment can enhance the incentive effect of equity incentive.Finally,aiming at the existing problems in the implementation of equity incentive,this paper puts forward to the corresponding policy recommendations,including optimization of equity incentive contract structure,paying more attention to the management fees and the cost of human capital,strengthening R&D investment and human capital cost,and strengthening the restriction and supervision system.In order to further improve the equity incentive mechanism,this paper also puts forward to the deficiencies and prospects of this study,so as to provide some helps for the development of equity incentive in China.