A Research on Equity Incentive Effect Based on Double Principal-agent Theory

Based on a double commission governance framework,taking the Chinese listed companies implementing equity incentive from 2004 to 2007 as samples,the authors research the effect of equity incentive.The research finds that equity incentive has positive impact on corporate performance.The stronger the balancing force of small and medium shareholders to large shareholders,the more obvious the effect of equity incentive.Meanwhile the property right types of final controllers have notable influence on the effect of equity incentive,the equity incentive ratio and corporate performance are more closely related in state-controlled listed companies than in non-state-controlled listed companies and the strengthening of equity balancing force is more conducive to improving incentive effect.