The Design Of Equity Incentives And Company Growth

In order to overcome the agency costs caused by the separation of ownership and management rights,the mechanism of equity incentives for company managers emerged.In the mature capital market,the long-term development of the equity incentive mechanism has matured.China's equity incentive mechanism came from the end of the 20th century.In 2005,along with the share reform,the China Securities Regulatory Commission promulgated the"Measures for the Management of Equity Incentives for Listed Companies(Trial)".Subsequently,various related supporting policies and regulations were issued,which provided guidelines for the equity incentive mechanism to play a correct and positive role in corporate governance in China.During the period from 2010 to 2016,349 listed companies in China's A-share market have implemented equity incentive plans,which shows that equity incentives have become very common in China's capital market and have become one of the main ways for corporate incentives.Since equity incentives can be widely recognized on a global scale,this incentive mechanism has important corporate management practical significance.Because of this,this paper hopes that through a certain amount of quantitative analysis and research,it will be possible to investigate in depth whether the equity incentive mechanism has an impact on the growth of listed companies in China and how much impact it has.This paper adopts a combination of theoretical research and empirical testing methods to empirically test the correlation between the equity incentive plan of listed companies in China and the company's growth.This article selects the listed company that publishes the equity incentive draft in 2013 as a sample,and empirically tests the relationship between the main variables in the design of the equity incentive system and the company's growth.The conclusion shows that there is a significant positive correlation between the maturity of the equity incentive plan,the condition of exercising rights,and the degree of difference in the number of awarded shares of the incentive object and the growth of the company.This shows that from the perspective of company growth,there is an inevitable causal relationship between the motives for formulating equity incentive plans and the effects of equity incentives,and only from the equity incentive plans for the company's management's true incentive motive can a better incentive effect be achieved.