Research On The Influence Of Range Setting Of Equity Incentive On Performance Of Listed Companies

Equity incentive,as a long-term incentive plan of listed companies,is an important part of incentive target's salary structure.On December 31,2005,China Securities Regulatory Commission promulgated the "shares of listed companies'incentive management approach"(Trial).,and listed companies are willing to implement equity incentive.According to the standard of dividing incentive objects,equity incentive can be divided into executive equity incentive and employee equity incentive.The responsibilities and obligations,powers and abilities of executives and employees in the company are very different,and equity incentive has great difference in the incentive effect of different incentive objects.One of the goals of implementing equity incentive is to promote the growth of corporate performance.Therefore,it is of great significance to study the impact of implementing equity incentive on corporate performance for different incentive objects.In practice,listed companies are willing to expand the incentive objects scope of equity incentive,and they are willing to implement equity incentive for employees while implementing equity incentive for senior executives.At present,researching on equity incentive mostly focuses on executive equity incentive and pays little attention to employee equity incentive.Employees,as users of the company's total production factors,play a very important role in the results of the company's business activities.The implementation of equity incentive plan for employees can improve their risk tolerance,create a culture of teamwork and mutual supervision among employees,and promote the company's performance.Therefore,it is of great significance not only to study the equity incentive of executives,but also to pay attention to the impact of employee equity incentive on corporate performance.Based on the data from 2006 to 2017,this paper studies the impact of equity incentive object scope on corporate performance and draws the following conclusions:(1)The intensity of equity incentive for executives is negatively correlated with corporate performance.(2)Employee equity incentive can promote company performance.The intensity of employee equity incentive is positively correlated with company performance.Compared with senior executives,the equity incentive of employees plays a more significant role in promoting the company's performance.(3)This paper further examines the factors that affect the incentive effect of employee equity incentive,and studies its impact on company performance from the perspectives of equity incentive model,validity period of equity incentive,free riding among employees,and scope of equity incentive for employees,so as to provide more thoughts for employee equity incentive plan.The main content of this paper:the first part is the introduction,which mainly includes the research background,research significance,research methods,research thinking framework and research innovation.The second part is a literature review,which mainly summarizes the relationship between executive equity incentive and company performance,the relationship between employee equity incentive and company performance,as well as relevant research on equity incentive plan design,and finally makes a comprehensive review of the literature.The third part is the theoretical basis and hypothesis.This part mainly introduces the concept of key variables.The theoretical basis of this paper includes principal-agent theory,management power theory,human capital theory,two-factor incentive theory,and current situation analysis of equity incentive.The fourth part is the research design,which introduces sample selection,data sources and definition of variables,and finally the establishment of regression model.The fifth part is the empirical results and analysis,which mainly includes descriptive statistics and correlation analysis,regression results analysis,stability test and further analysis.Finally,the conclusion and enlightenment are drawn.According to this empirical findings,the listed company should follow these recommendations:(1)They should expand the scope of equity incentive,reasonably design the equity incentive scheme for senior executives,and encourage listed companies to implement equity incentive for employees when formulating medium-and long-term incentive plans.(2)We should improve the corporate governance mechanism.We should improve board of shareholders system of listed companies,improve the structure of the board of directors,and improve the efficiency of implementing equity incentives for senior executives.(3)when designing the employee equity incentive plan,the company can choose restricted stock and implement the equity incentive with a long term,and should expand the scope of employee incentive and implement equity incentive for more employees.(4)combining with China's institutional environment,we should encourage state-owned enterprises to implement equity incentive plans and improve the efficiency of equity incentive in state-owned enterprises.