Research On The Impact Of Equity Incentive On Enterprise Value Of Gem Enterprises

With the gradual development and improvement of the system and laws related to equity incentive,more and more listed companies begin to use equity incentive as a means to solve agency problems and attract talents,and the research on equity incentive is gradually enriched.However,as a kind of long-term incentive,the mechanism and path of equity incentive for corporate value still need to be explored and studied,and its practical utility and scope of application are also worthy of our discussion.At the same time,there is no final conclusion on how internal control plays a role in the implementation of equity incentive.From the perspective of traditional financial accounting,this paper divides the behaviors related to the accumulation of enterprise value into three parts: business behavior,financing behavior and investment behavior.Taking operating performance,financing constraints and inefficient investment indicators as representatives,this paper studies their relationship with equity incentive.In the meantime,it adds internal control as a moderating variable to explore its role in the relationship between equity incentive and enterprise value.Compared with the main board listed enterprises,the GEM listed enterprises represented by high-tech enterprises have the characteristics of high proportion of equity incentive,fast growth rate,great development potential and high quality of internal control.Therefore,this paper selects the GEM listed enterprises from 2012 to 2020 as the research object,takes equity incentive as the explanatory variable,and takes the return on total assets,enterprise financing constraint index and inefficient investment level as the explanatory variables.Take internal control as the moderating variable.At the same time,control variables such as enterprise size,enterprise growth and board size are added for empirical research.The following conclusions are drawn:(1)The implementation of equity incentive can improve the business performance of enterprises;(2)The implementation of equity incentive in enterprises is conducive to alleviate the financing constraints;(3)Equity incentive can restrain the behavior of overinvestment and underinvestment;(4)Internal control has a positive impact on business performance,but the moderating effect on the relationship between equity incentive and business performance is not obvious;(5)When the quality of internal control is higher,the mitigation effect of equity incentive on financing constraints is strengthened;(6)Compared with the underinvestment behavior,the moderating effect of internal control is more obvious in the relationship between equity incentive and overinvestment.The inhibitory effect of equity incentive on overinvestment increases with the improvement of internal control.Finally,in response to the research analysis,countermeasures and suggestions are proposed,and GEM companies should take three aspects to improve the design of equity incentive system,enhance the supervision of the implementation process of equity incentive and improve the long-term performance of enterprises to exert the positive influence of equity incentive on corporate value.