Choice Of Equity Incentive Tools Based On Equity Incentive Efficiency Of The Listed Companies

This paper used the DEA on the efficiency of equity incentive,and put the efficiency value as the dependent variable into the Tobit model,then analyzed the factors affecting the efficiency of equity incentive and the choice of equity incentive tool through Tobit model.Among them,the factors affecting the choice of equity incentive tool included the size of company,duality of chairman and CEO,second order interaction item of equity incentive tool and company size,third order interaction item of equity incentive tool,company size and growth of company,third order interaction item of equity incentive tool,nature of equity and control rights of large shareholders,third order interaction item of equity incentive tool,control rights of large shareholders and manager’s incentives.The factors that affect the efficiency of equity incentive included equity incentive tools,company size,and growth of company.The study found that,in general,the efficiency of stock options was higher than restricted stock.But for the lager and high growth enterprise,the small and low growth enterprise,the enterprise with fierce confliction between control rights of large shareholder and manager’s incentives,restricted stock was likely to exceed stock options.These factors were taken as independent variables into the new model,thus the model of the equity incentive tool was selected.By calculating the efficiency of stock options and restricted stock,the company can determine the tool.The company can provide the value above,and they will get a tool with higher efficiency.