The Relationship Between Equity Incentive And Investment Efficiency In New OTC Market

Equity incentive is designed to solve the problem of principal-agent relationship between management and governance,which makes management interests and management tend to be consistent.It is a common way of corporate governance among listed companies.However,equity incentives may also have a negative impact on companies.The research on equity incentives is meaningful.The investment efficiency of enterprises is the cornerstone of the long-term development of enterprises.The level of investment efficiency determines the future operation of the company.However,the investment efficiency of enterprises is difficult to be accurately measured,so the research and measurement of investment efficiency is also of great significance.The New OTC Market accommodates tens of thousands of public companies.The regulatory and trading systems are different from the main board listed companies.It is innovative and practical to study the effect of equity incentives for public companies in the New OTC Market.The object of this paper is the relationship between equity incentives and the investment efficiency.This thesis validates the conclusions in the empirical model through case analysis.The implementation of equity incentives of the New OTC Market public companies cannot improve the company's investment efficiency.For the New OTC Market public companies,the rationality of the equity incentive plan should be reconsidered,and the equity incentives should be designed to promote the investment efficiency of enterprises.For the supervision of the capital market,we should constantly standardize the capital market and the manager market,and constantly improve the system and regulations related to equity incentives.