An Empirical Study on the Effects of Equity Incentive of the Listed Corporations in the SME Board of China —An Empirical Analysis Based on the View of Earnings ManagementReport as inadecuate




An Empirical Study on the Effects of Equity Incentive of the Listed Corporations in the SME Board of China —An Empirical Analysis Based on the View of Earnings Management - Download this document for free, or read online. Document in PDF available to download.

Currently, most researches are focusing on Shanghai &Shenzhen exchange, and few researches have been done on the SME board. Besides,while studying the effect of equity incentive, most of the researchers haveignored the earnings management triggered by stock ownership incentive. Thispaper takes the SME board companies which have implemented stock ownership incentiveas the research object. We have used earnings management to modify the companyperformance and carried out an empirical research to study the effect of stock ownership incentive.Our result shows that without earnings management to modify thecompany performance, stock ownership incentive ispositively related to company performance. Taking theearnings management into account, the positive correlation relationship betweenstock ownership incentive and company performance will be weakened, andstock ownership incentive will stimulate earnings management.



KEYWORDS

Equity Incentive; SME Board; Company Performance; Earnings Management

Cite this paper

L. Xu and W. Cui -An Empirical Study on the Effects of Equity Incentive of the Listed Corporations in the SME Board of China —An Empirical Analysis Based on the View of Earnings Management,- Technology and Investment, Vol. 5 No. 1, 2014, pp. 26-31. doi: 10.4236-ti.2014.51004.





Author: Lixin Xu, Wenqin Cui

Source: http://www.scirp.org/



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