An Empirical Research on the Relationship of Equity Incentive and Performance of Chinese Listed Companies

At present, to improve their businesses and obtain more profits by enhancing enterprise competitiveness, more and more listed companies have been committed to the selection of executives and the study of motivation. Among the many forms of incentives, stock-based compensation play a vitally important role. Many scholars abroad did survey on the relationship between equity incentive and corporate performance, but so far they didn't reach same conclusion. Considering that option incentive system is far from perfect, particularly in our own, there is not definite answer to the question. So, in order to study how the management stock position proportion influence the corporate performance, this paper takes listed companies that have implemented stock-based stimulation between 2012 and 2015 as the research object.