An Empirical Study On The Impact Of Equity Incentives On The Performance Of Listed Companies In China's Manufacturing Industry

With the development of the economy,the separation of business owners from management rights is a commonly used method for companies to improve corporate performance.However,the implementation of this method will lead to conflicts between the enterprise owner and the operator,namely the principal-agent problem.Therefore,how to mitigate the principal-agent problem caused by the separation of powers and reduce the agency cost and improve the performance of the company has become an urgent problem to be solved.Equity incentives are an effective means for long-term incentives for senior executives,and have been favored by more and more listed companies since the “Equity Incentive Measures for Listed Companies(Implementation)” was promulgated.However,equity incentives are a double-edged sword.While encouraging senior management and core technical personnel to fully exert their abilities,they may also lead to violations of corporate executives and other violations.As a pillar of the national economy,manufacturing has gradually begun to implement equity incentives.However,there are few studies on the impact of equity incentives on the listed companies in the manufacturing industry,and the research conclusions are not consistent.Therefore,it is particularly necessary to study the relationship between stock incentives and performance of listed companies in the manufacturing industry.Starting from the research background and significance,this paper has proceeded with the research dynamics and related theoretical foundations of equity incentives at home and abroad,and found the problems and evaluation methods when listed companies in the manufacturing industry implement equity incentive.The annual report of listed companies in manufacturing from 2013 to 2016 was used as sample data.The statistical analysis,correlation analysis and multiple linear regression of the selected financial indicators were performed through SPSS.21 software to analyze the impact of the implementation of equity incentives on the performance of China's manufacturing listed companies.Through empirical analysis,the following conclusions should be drawn from this paper: There is a positive correlation between the proportion of senior management holdings in listed manufacturing companies and company performance.This shows that equity incentives play a positive role in improving the performance of listed companies in the manufacturing industry.Finally,based on the empirical analysis results,the paper puts forward relevant countermeasures and suggestions for the implementation of equity incentives for listed companies in China's manufacturing industry.The study will be helpful to understand the specific conditions of the implementation of equity incentives for listed companies in manufacturing and the effect of equity incentives on companies,and provide corresponding opinions and suggestions for the implementation of equity incentives for listed companies in the manufacturing industry.