Proceedings of the 2017 International Conference on Organizational Innovation (ICOI 2017)

Empirical Study on Management Equity Incentive and Investment Efficiency Based on Shanghai and Shenzhen A-share listed companies

Authors
Dong-Ping Han, Cai-Cai Guo, Yue Zhao
Corresponding Author
Dong-Ping Han
Available Online July 2017.
DOI
https://doi.org/10.2991/icoi-17.2017.11How to use a DOI?
Keywords
Managerial Equity Incentive; Investment Efficiency; Management authority theory
Abstract
More and more listed companies are trying equity incentive in China, but there has not yet formed a unified understanding of the impact of equity incentive on investment efficiency. Based on the theory of management power, using the investment model of Richardson and choosing Shanghai and Shenzhen A-share listed companies which has implemented with equity incentive from 2006 to 2015 as research sample, we verify the impact of equity incentive on investment efficiency. It is proved that the management equity incentive has a significant negative impact on the investment efficiency of the enterprise through comparing the relationship between equity incentive and investment efficiency of the two types of listed companies, overinvestment and underinvestment. The effect of the relationship between the equity incentive and the investment efficiency is different according to different properties of actual controller. Compared with state holding companies, it is weak that the negative relationship between equity incentive and the investment efficiency in non-state holding companies. The size of listed companies will also influence the relationship. The final results show that the implementation of equity incentives does no help to curb overinvestment or ease the underinvestment.
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Proceedings
2017 International Conference on Organizational Innovation (ICOI 2017)
Part of series
Advances in Intelligent Systems Research
Publication Date
July 2017
ISBN
978-94-6252-359-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/icoi-17.2017.11How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Dong-Ping Han
AU  - Cai-Cai Guo
AU  - Yue Zhao
PY  - 2017/07
DA  - 2017/07
TI  - Empirical Study on Management Equity Incentive and Investment Efficiency Based on Shanghai and Shenzhen A-share listed companies
BT  - 2017 International Conference on Organizational Innovation (ICOI 2017)
PB  - Atlantis Press
SP  - 59
EP  - 67
SN  - 1951-6851
UR  - https://doi.org/10.2991/icoi-17.2017.11
DO  - https://doi.org/10.2991/icoi-17.2017.11
ID  - Han2017/07
ER  -