Research on the Relationship between Equity Incentive and Enterprise Performance Based on Propensity Score Matching

DOI: https://doi.org/10.62517/jse.202411315

Author(s)

Wenyue Yu*

Affiliation(s)

School of Business Administration, University of Science and Technology Liaoning, Anshan, Liaoning, China *Corresponding Author.

Abstract

In corporate governance, the separation of ownership and management rights has always been a difficult problem for enterprises and academic circles. The introduction of equity incentive plan has alleviated the separation of the two rights to a certain extent. Ordinary OLS regression is difficult to overcome the influence of endogeneity. Therefore, the companies selected in this paper are Shanghai and Shenzhen A-share listed companies in China, and their financial data from 2010 to 2022 are selected for research, uses propensity score matching method to divide the samples into incentive group and control group, and conducts co-support test and balance test on the samples, so as to study the relationship between equity incentive and enterprise performance. Linear regression method is used to analyze the effect of government subsidies on firm performance. It is found that the implementation of equity incentive can improve the performance level of enterprises. Through the role of government subsidies, the influence of equity incentive on the performance level of enterprises will be enhanced.

Keywords

Equity Incentive; Enterprise Performance; Propensity Score Matching; Regulating Effect

References

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