Study on the Effects of Equity Incentives on the Performance of Listed Companies of Environmental Protection in China

In order to improve the performance of listed companies of environmental protection and reverse the status of low profitability through equity incentives, this paper probes into the effects of the intensity and pattern of equity incentives on the performance with a sample of 30 listed companies of environmental protection implementing equity incentives. It is shown from the empirical study that, at present, strengthening the intensity of equity incentives can improve the performance of listed companies of environmental protection; Restricted stock can do better than the stock option in improving its performance. However, for the time being the corresponding performance of the two patterns shares no sharp differences. In view of this, it is proposed in this paper to improve the performance of listed companies of environmental protection by perfecting equity incentives.