Study On The Effectiveness Of Stock Incentive Of A-share Listed Companies In China

In recent years,China's A-share listed companies implement the equity incentive plan coming a trend.Since the Non-Tradable Shares Reforms carried out,the SFC has also strengthened its regulatory construction.Theoretically the equity incentive as a way of long-term incentive to the operators of company,to a certain extent,will reduce the “moral hazard” of enterprise managers to improve the enterprise performance.However,empirical study in china shows that there is still a disagreement on whether the equity incentive can improve enterprise performance effectively.Therefore,this paper will try to further analysis the relationship between the equity incentive and the enterprise performance.First of all,this paper uses factor analysis to draw a comprehensive performance indicators from 11 corporate financial indicators,as the representative of corporate performance.Then through the empirical research shows that the enterprise performance of listed companies after implementation of equity incentive is better than before;The effectiveness of the implementing of equity incentive of listed companies with different ownership is different,and the private company performance better than the state-owned company;The level of equity incentive have the interval-effect on the enterprise performance;The equity incentive has the lag-effect on enterprise performance.According to the empirical results,this paper gives relevant policy recommendations.