Research on the Influence of Management Equity Incentive on Enterprise Value of High-tech Firms

With the company's separation of ownership and management, the principal-agent problem has become important in corporate governance. Management equity incentive is an important measure to solve the principal-agent problem in the mature capital market. However, whether it can be significantly effective in the Chinese capital market still needs our attention. Therefore, based on the requirement of study in endogeneity, we select 133 high technology firms as the sample using balanced panel data between 2012 and 2014 to analyze the influence of management equity incentive on enterprise value. The evidences suggest: management equity incentive of High-tech firms and enterprise value has significantly negative correlation relationship, maybe due to opportunistic timing behavior in equity incentive.