Abstract

As an important long-term incentive mode, the equity incentive promotes the managers to contribute to the interest uniformity of managers and shareholders. By using Paired-Samples T test methods and regression analysis method and choosing companies that issued the equity incentive plan in 2007 as the sample, this paper comparatively analyzes the differences in the performance of companies before and after the implementation of equity incentive, companies implementing equity incentive and ones not. Furthermore, factors which influence equity incentive effect are examined. The results show that equity incentives can promote the company's performance and the incentive effect should be better in the companies of state-control holding or low ownership concentration companies.

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