Dissertation > Excellent graduate degree dissertation topics show

Analysis of the Implementing Effect of Equity Incentive Mechanism and Its Influential Factors Based on the Listed Company of China

Author: TanXiaoHong
Tutor: LvXianZuo
School: Southwestern University of Finance and Economics
Course: Financial Management
Keywords: Equity incentive Implementation of the results Influencing factors
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 1644
Quote: 3
Read: Download Dissertation

Abstract

With the separation of company ownership and management rights to shareholders as the owner, in order to reduce the short-term behavior of the operators, to make them more concerned about the long-term interests of the enterprise, the better for the company and shareholders' interests, the interests of the company and individual operators interests combined with a long-term incentives - equity incentive system came into being. Equity incentive is a form of company equity to give business owners a certain economic rights obtained by operators to enable them to the identity of the shareholders to participate in corporate decision-making, profit-sharing, risk, diligent and responsible for the company's long-term development services Stimulation Methods. The equity incentive management has also become the shareholders of the enterprise, individual interests and the interests of the company to reach consensus. Corporate management and shareholders' interests are bundled together to form a community of interests, the management and the company, such a system for management to both pressure is the driving force, as to management to bring the \agency costs. Therefore, the use of equity incentive remuneration policy to solve the management of joint-stock companies only concerned with short-term benefits, short-term decision-making, and to ignore the shortcomings of the long-term development of enterprises, is conducive to the rise of the performance of the company, improve the management level and decision-making levels, reduce short-sighted behavior. The equity incentive helps to overcome the \The modern theory of the firm and foreign practice has proved that equity incentives played a positive role in improving the corporate governance structure, reduce agency costs, enhance management efficiency and enhance market competitiveness. In short, the implementation of equity incentive of great benefit for the company. Western countries, the implementation of equity incentive to improve the company's performance has basically been verified, but because of China's national conditions and the impact of the system, equity incentive impact on corporate performance there are still controversial. In recent years, more and more listed companies, China's implementation of incentive stock options, and its purpose also want to take advantage of the equity incentive to improve the company's performance. With the constant improvement of the basic completion of the split share structure reform in China and China's capital market, the equity incentive as a long-term incentives in China's implementation of external basic conditions, the number of listed companies in China has equity incentive as the company of a important long-term incentives, and in order to improve the company's performance, equity incentive of the implementation of effective or not directly related to the equity incentive in the further development of our country. This article is based on the implementation of equity incentive in China A-share listed companies for the study, analysis of equity incentive impact on the performance of listed companies in China, and focus on the impact of options to incentivize the implementation effect factors empirical research, in order to be able to be listed on China implementation of the company's equity incentive to provide some reference. Incentive stock options theory are reviewed, meaning and specific categories of incentive stock options, and by elaborating the human capital theory, principal-agent theory, transaction cost theory and two-factor theory to lay a theoretical foundation for the study; In this paper, comparative analysis of the selected sample of equity incentive the effect of implementation on the basis of this study, we selected six factors that may affect the equity incentive implementation effect, through the establishment of a regression model to verify the impact of equity incentive the effect of factors. According to the results of this study finally arrive at the following conclusion: the implementation of equity incentive, the sample company's overall performance has improved, but showing a declining trend, the implementation of equity incentive system does not achieve the desired results. This is because the use of the equity incentive system in our country is not mature enough, the progressive development of relevant laws and regulations is also in the last two years before, a few years ago, China's listed companies in the equity incentive plan, the arbitrary large, so that the effectiveness of lacking. Some companies in the development of equity incentive vesting conditions, the provisions of the exercise period is too loose, so much so that the Equity Incentive become the company executives have a company listed on the plunder of wealth channel, so that the long-term effects of the equity incentive greatly reduced, even the profits of listed companies because equity incentive serious losses. In short, the implementation of equity incentive listed companies in China have a certain effect, but due to the lack of effectiveness of China's capital market and corporate governance structure is imperfect, equity incentive implementation of the long-term effect is not obvious. In order to make equity incentive really play a role in China's listed companies or to vigorously improve the China's capital market, improve the corporate governance structure, the implementation of incentive stock options have a good internal and external environment. Factors Influencing analysis the following conclusions: (1) the enterprise scale factor equity incentive is not obvious, indicating the size of the implementation of equity incentive effect of listed companies has little, with China's relevant laws and regulations perfect as a listed company, even a smaller scale, the face is still a lot of external constraints, the company's system is still designed to meet the regulatory requirements of the Securities and Futures Commission, although the design of the system improvement may not be large companies the enterprise scale factors on the implementation of equity incentive effect, but the results of this study, no significant effect. (2) The capital structure has a significant impact on the results of the implementation of equity incentive. Asset-liability ratio larger the enterprise the greater the risk, the greater the possibility of moral crisis, equity incentive as an important means to overcome the management of the risk of moral hazard, the principal and agent to form a community of interests, the operators bundled with the interests of owners, thereby reducing the short-term behavior of the operators, to work harder to improve the company's performance. According to the conclusions of this study, the risk of the company after the implementation of equity incentive the performance of the company has increased significantly in the implementation of equity incentive to take into account the risk of the company itself. (3) market and competitive factors and the results of a positive correlation, this conclusion does not match with the previous assumption. In general, a perfectly competitive product market can be more fair response to the corporate performance, the greater the competition in the market, the main business profit margins, the lower, the better the effect of the implementation of equity incentive. The empirical results show that the face of market competition, the smaller the company its better implementation of equity incentive performance. In China, facing competition in the market are mostly small businesses in the resource or monopoly industries, companies such results to the control of the senior management in the implementation of equity incentive, executives may be in order to be rewarded more manipulation profits, improve the performance of the company. (4) in a set of three dummy variables, the the ROE difference between different industries adjusted relatively large, the performance results significantly improved after the implementation of equity incentive for the transportation, warehousing, followed by electricity, gas and water production and supply industry, and real estate industry, agriculture, forestry, animal husbandry and fishery in the implementation of equity incentive performance is decreased year by year, of course, the industry is not convincing enough for only one sample. Overall, relatively large differences in the effect of the implementation of equity incentive industry, all listed companies in the equity incentive plan, according to the company in which the industry to develop for the company's equity incentive program. Performance incentive model factors for deferred payment mode and equity incentive effect of the implementation is more significant, followed by stock options and stock appreciation rights, but three equity incentive mode only one sample, not convincing enough. Listed companies choose to implement specific equity incentive model must take full account of various factors, choose the company's own equity incentive mode. The third dummy variables ultimate controller of factors, there is no significant correlation between China's listed companies in the implementation of equity incentive without ultimate control of the human factor as a key consideration. Know from this study, a listed company in the implementation of equity incentive, the scale factor of the company itself and the ultimate controller of the effect of the implementation of small, but significant capital structure and market competition factors on the implementation of equity incentive effect. In addition, the equity incentive plan, but also to develop in line with the company's own incentive model, because the excitation pattern will ultimately affect the company's equity incentive effect. Listed companies in China in the development of equity incentive programs to comprehensive consideration of many factors, so that the equity incentive plan to achieve the desired effect. The main contribution of this paper are: the study, the study sample was selected listed companies in the true sense of the implementation of equity incentive. Incentive Effect of the Implementation of listed companies in the past, most of the studies just listed stake as the implementation of equity incentive intensity, and in order to establish regression models for analysis of the Company's senior management, to do so, and not take into account shares held by senior management is not the same incentive, a large number of listed companies have executives holding phenomenon, but is not always obtained by the equity incentive. This article in the sample selected overcome this deficiency, the real implementation of incentive stock options listed companies, these companies are in the annual report or clear in the announcement of the implementation of equity incentive, and its exact equity incentive implementation time mode, so makes this study have higher credibility. In addition, in recent years, experts and scholars in China on incentive stock options more and more research, but most of them are for the study of the equity incentive impact on the performance of listed companies, less equity incentive impact factors, this article will focus on the equity incentive effects of factors, mainly on the impact of the implementation of equity incentive effect What are the factors. Through equity incentive influencing factors, allows us to understand what factors can better play the role of equity incentive for us rational use of these factors, the study in the implementation of equity incentive for companies to provide practical theory basis.

Related Dissertations

CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
© 2012 www.DissertationTopic.Net Mobile