The Influence of Equity Ownership Incentive on Enterprise Value in China - Empirical Analysis based on the Equity Ownership Incentive in a Market from 2006 to 2008

Foreign business management theory and experience shows that,in the modern property rights structure, equity ownership incentive is an effective tool to resolve differences in the behavioral objectives, and promote the growth of corporate value. Along with the deepening of the split share reform, equity ownership incentive is increasingly being concerned in the academic and business field in China. Based on econometric analysis, this paper studies the influence of equity ownership incentive on enterprise value. The conclusion is that there is no significant linear but U-range relationship between them. In view of this, our government and businesses should work hard to promote the stock option motivation from the macro and micro levels separately.