Equity Incentive, Heterogeneity of top Management Team and Overinvestment

Abstract

Taking 4076 financial data of 1019 listed companies in manufacturing industry from 2012 to 2016 as samples, this paper studies the influence of executive equity incentive on excessive investment behavior and explore the influence of executives' personal characteristics on their investment decisions. The results show: the implementation of equity incentives for executives can effectively suppress excessive investment behavior; the heterogeneity of tenure has a positive moderating effect on the relationship between them, but education has a negative moderating effect, while the moderating effect of age and gender is not obvious.