The Impact of Employee Equity Incentives on the Performance of SMEs

DOI

10.2991/icoeme-19.2019.137How to use a DOI?

Keywords

small and medium enterprises; equity incentives; company performance

Abstract

Based on the stock option and restricted stock perspective, the data of SMEs listed companies in 2015-2017 are used to test the relationship between employee equity incentives and company performance. The analysis shows that the equity incentive effect of listed companies in SMEs is obvious, and the financial performance of enterprises implementing equity incentives is significantly better than those without equity incentives. Different equity incentive models have different incentive effects. From the perspective of equity incentive model, China's SME listed companies basically adopt the stock option model, but the incentive model produces less effect than restrictive stocks. The equity incentive effect is affected by the characteristics of enterprises such as industry and enterprise scale. From the perspective of industry, non-manufacturing SMEs listed companies have the best effect on equity incentives; at the same time, the larger the scale of the company is, the higher the equity incentive effect is and the better the company's performance is. Yet in the past, the greater the incentive intensity was, the better the performance of the company was, but the impact of equity incentive intensity on the performance of the company was small.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lingyan Zhou
PY  - 2019/06
DA  - 2019/06
TI  - The Impact of Employee Equity Incentives on the Performance of SMEs
BT  - Proceedings of the 2nd International Conference on Economy, Management and Entrepreneurship (ICOEME 2019)
PB  - Atlantis Press
SP  - 738
EP  - 745
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoeme-19.2019.137
DO  - 10.2991/icoeme-19.2019.137
ID  - Zhou2019/06
ER  -