Empirical research on influence of major shareholders control to equity incentive effect

Equity incentive has become an important measure to encourage managers, since 239 listed firms have carried out this measure. It is significant to study the influence of major shareholders control on equity incentive because major shareholder control phenomenon still exists in listed firms in China. This paper finds evidence about the impact of major shareholders control on equity incentive through the linear regression method. The evidence shows that equity incentive promotes the performance of listed firms without considering major shareholder control. When the major shareholder occupies more than 50% of equity, the effect of major shareholder control on firm performance doesn´t show significantly with the increase of the share. In contract, when the major shareholder control gradually increases before reaching 50%, the major shareholder control influences the firm performance significantly.