| In the past decade,due to the gradual release of national regulatory measures,the specific implementation scope of enterprise equity incentives has become more extensive.Therefore,through long-term exploration and improvement,the China Securities Regulatory Commission released the latest "Company Equity Measures" in 2016 to standardize and guide companies to implement rewards through equity methods.According to the announcement of the China Development and Reform Commission,a total of 818 companies in the Chinese A-share market launched 834 equity incentive plans in 2021,reaching a historical peak.The implementation of equity incentive plans has increasingly attracted the attention and concern of corporate chairmen,executives,and market investors,especially for high-tech and innovative companies with increasingly strong requirements for equity incentive plans.It is also expected that enterprises will bind core employees through equity incentive mechanism plans.Equity incentives are one of the important means in corporate governance,which can effectively alleviate agency problems in enterprises and have an impact on corporate decision-making.At the same time,the issue of corporate financing is also a hot topic of current research by scholars.In the financing of listed companies in China,debt Financing and equity financing are the main means.Although debt Financing may increase financial risks compared with equity financing,it does not weaken shareholders’ corporate control and share after tax profits as equity financing does.Due to the different qualifications and business scales of enterprises,the cost of debt also varies,and creditors also have a certain say in the cost of debt Financing of enterprises.Therefore,how to effectively communicate with creditors and reach consensus is a problem that must be solved in the financing process of enterprises.However,due to the issue of information asymmetry between creditors and enterprises,equity incentives can serve as a good way to convey corporate governance information.However,the implementation of equity incentives may increase the risk taking and earnings management motivation of corporate executives,making creditors more cautious in preventing risks and seeking higher premiums.This article will explore how to use equity incentives to improve the overall operational performance of enterprises,and explore how to implement equity incentives in modern company management systems.In order to explore the impact of equity incentive on the cost of corporate debt Financing,this paper will conduct research based on the data of listed companies in China,using a combination of normative and empirical research methods,from the perspective of shareholders,managers and creditors,to explore the impact of executive equity incentive on corporate debt costs.By using principal-agent theory,incentive theory,human capital theory,signal transmission theory,information asymmetry theory,etc.,analyze the relationship between executive equity incentives and corporate debt costs.Using the historical data samples of Chinese listed companies from 2012 to 2021,this paper establishes a multiple regression model for empirical research.The results show that equity incentive is significantly negatively related to the cost of debt Financing,in which internal control plays a part of the intermediary role.Based on the research conclusions of this article,the following suggestions are proposed:(1)Enterprises should develop scientific and reasonable equity incentive plans.(2)Enterprises should adhere to parallel internal management and supervision.(3)Creditors should strengthen their risk identification and assessment capabilities.(4)Government departments should improve legal and regulatory guidance. |
