Review on the Relationship Between Equity Incentive and Corporate Performance

Whether the equity incentive system,as a long term incentive,has played its due effect is concerned and debated long-term by theory and practice.To test the effectiveness of equity incentives,domestic and foreign scholars had done a lot of research on the relationship between equity incentive and corporate performance,but the conclusions are not uniform.Most foreign studies confirmed that equity incentive is related with corporate performance.But in the past domestic empirical research,the major conclusions are that equity incentive and corporate performance are not related.In addition,the conclusions of Chinese and Western countries are quite different,mainly because of the different capital market environment.