Research on the Effectiveness of Equity Incentive of Listed Companies Based on the Perspectives of Different Board Markets

Abstract

This paper chooses the data of the companies of A-share on main-board market, the SME board market and the growth enterprise market in Shenzhen and Shanghai SE from 2011 to 2015, and it uses the regression analysis method to study the effectiveness of the equity incentive in order to provide the listed companies with better suggestions of the equity incentive. The results show that there is a weak negative correlation between the executive holdings and the corporate performance, and three board markets have the same results, so the effectiveness of the equity incentive is not satisfactory. Besides, except that the sustainable growth rate and the share concentration have significant positive correlation with the company performances, there is no significant positive correlation or negative correlation between the other factors and the company performances.