Business Management and Strategy
The Effects of Equity Incentives on Corporate Performance in China
Abstract
For modern companies, equity incentives are used as a tool to address agency problems. This study examines the long-term impact of equity incentives on corporate performance using data from A-share listed companies in China from 2010 to 2022. The findings suggest that equity incentives can enhance corporate performance for four years after implementation, with the strongest effect observed in the second year. Additionally, there is no significant difference in the impact of equity incentives on corporate performance between state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs) in China.
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PDFDOI: https://doi.org/10.5296/bms.v15i2.22107
Copyright (c) 2024 Rongqiu Zhu, Haslindar Ibrahim
This work is licensed under a Creative Commons Attribution 4.0 International License.
Business Management and Strategy ISSN 2157-6068
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