A Study on Equity Incentive Contract Elements and Their Influencing Factors

Equity incentive is widely viewed as one of the effective means to solve the principal-agent problem.However,incentive contract has many problems;such as too short incentive period,a single performance indicator and exercising condition only designed formately and low quality;rarely arouse the attention of scholars.This paper,from the perspective of the incentive contract structure,uses equity incentive contracts elements as the object of study,selects related data of the listed companies,and empirically analyzes the equity incentive contracts elements and factors which influence them.The results show that: equity incentive program has a better incentive effect when incentive period longer or performance condition strict;state-owned enterprise choose a longer incentive period;Board of directors,independent directors,can constrain the formulation of exercising condition to a certain degree,ownership concentration and level of debt have a positive significant relationship with exercising condition.This study complement the related research of equity incentive contract structure characteristics,providing the reference to improve the quality of the equity incentive scheme and standardize the equity incentive system for listed companies.