Do equity incentives for the managements have impact on stock-pricing efficiency? Evidence from China

IF 4.3 Q2 MANAGEMENT

International Journal of Accounting and Information Management Pub Date : 2020-06-01 DOI:10.1108/ijaim-03-2020-0031

Yue’e Long, Xinyi Huang

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引用次数: 1

Abstract

Purpose - The purpose of this paper is to investigate the impacts of equity incentive on stock pricing efficiency, as well as the institutional investors’ response to equity incentive and its role in stock pricing efficiency. Design/methodology/approach - Using a sample of 1,842 companies that announce implementing equity incentive schemes during the period 2009-2018, the authors compare the pricing efficiency between the firms with equity incentive and those without equity incentive, and companies that implement equity incentive before and after the implementation of equity incentive by using multiple regression and propensity score matching -DID (difference in difference) method. In addition, the multiple regression model is built to test the response of institutional investors to equity incentive and its role in the efficiency of stock pricing. Findings - The empirical results indicate that a company’s stock price is influenced more by firm-specific information than systematic factors after it announces a stock-based compensation scheme. Institutional investors respond positively to companies that implement equity incentives. Among the companies that have implement equity incentive, the higher the shareholding ratio of institutional investors, the higher the efficiency of stock pricing. Originality/value - The authors innovatively establish a connection between the implementation of equity incentive and the operation of stock market. The results imply that besides alleviating the agency problem, equity incentives can also improve the efficiency of stock pricing, which provide empirical evidence to support the positive effect of equity incentive.

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管理层的股权激励对股票定价效率有影响吗?来自中国的证据

目的——本文的目的是研究股权激励对股票定价效率的影响，以及机构投资者对股权激励的反应及其在股票定价效率中的作用。设计/方法/方法-以2009-2018年期间宣布实施股权激励计划的1842家公司为样本，作者使用多元回归和倾向得分匹配- did (difference in difference)方法，比较了实施股权激励计划的公司与未实施股权激励计划的公司以及实施股权激励计划前后的公司之间的定价效率。建立多元回归模型，检验机构投资者对股权激励的反应及其对股票定价效率的影响。研究发现-实证结果表明，公司公布股票薪酬方案后，股价受公司特定信息的影响大于系统因素的影响。机构投资者对实施股权激励的公司反应积极。在实施股权激励的公司中，机构投资者持股比例越高，股票定价效率越高。原创性/价值——作者创新性地建立了股权激励实施与股票市场运行之间的联系。研究结果表明，股权激励除了可以缓解代理问题外，还可以提高股票定价效率，为股权激励的积极效应提供了实证证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Accounting and Information Management MANAGEMENT-

CiteScore

7.90

自引率

3.00%

发文量

期刊介绍： The International Journal of Accounting & Information Management focuses on publishing research in accounting, finance, and information management. It specifically emphasizes the interaction between these research areas on an international scale and within both the private and public sectors. The aim of the journal is to bridge the knowledge gap between researchers and practitioners by covering various issues that arise in the field. These include information systems, accounting information management, innovation and technology in accounting, accounting standards and reporting, and capital market efficiency.