Companies’ Preference To Composite Equity Incentive Model:Empirical Evidence From Non-State-Owned Companies

Since 2006,China Securities Regulatory Commission(CSRC)has officially promulgated the "Measures on Equity Incentive Management of Listed Companies",under the guidance which listed companies can choose to use restricted stocks or stock options to design long-term incentive plans.So far,more than 2,000 incentive plans have been announced and implemented by the board of directors.But in practice,in addition to the two incentive tools,more and more companies have a third choice,that is,to use both options and restricted stock in one incentive plan,called "composite equity tool".Scholars have rich research achievements in the selection of single inventive tool.However,there are few studies on composite equity incentive tools.This paper will take the equity incentive plan of non-state-owned enterprises as the sample.Spearman model and binary logistic regression model were selected for analysis.Through empirical analysis,it is found that the listed exchange sector,the volatility of stock prices,the total amount of incentive plans,proportion of senior executives and proportion of eligible are the key factors that significantly affect the choice of composite tools.