Do Equity-Based Incentives Improve the Corporate Performance? The Emprical Evidence from the China Listed Companies after Equity Division Reform

In this paper, I study the relationship between performance of companies and the levels of executive equity-based incentive and find there´s a significantly positive relationship between performance of companies and the levels of restricted stock incentive, but there´s a non-significantly positive relationship between performance and the levels of stock option incentive. On the other hand, the relationship between the equity incentive and corporate performance is not a linear, equity incentive impact on the performance of companies in the state-owned companies and non-state-owned holding companies have a significant difference.