Research on the impact of equity incentives on the financial performance of new energy enterprises
Based on the data of 253 A-share listed new energy enterprises from 2010–2021, this paper studies the correlations among equity incentives, the three contract elements of equity incentives and the financial performance of new energy enterprises by using fixed-effect regression analysis, and on this...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-03-01
|
| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1116665/full |
| _version_ | 1811160905238446080 |
|---|---|
| author | Keyu Chen Yaguai Yu Yaguai Yu Pengtao Jiang Pengtao Jiang Hanlu Bao Taohan Ni |
| author_facet | Keyu Chen Yaguai Yu Yaguai Yu Pengtao Jiang Pengtao Jiang Hanlu Bao Taohan Ni |
| author_sort | Keyu Chen |
| collection | DOAJ |
| description | Based on the data of 253 A-share listed new energy enterprises from 2010–2021, this paper studies the correlations among equity incentives, the three contract elements of equity incentives and the financial performance of new energy enterprises by using fixed-effect regression analysis, and on this basis, Granger causality analysis is applied to determine the causal relationship, and finally, the degree of influence of equity incentives contract elements is further studied by Grey Relational Analysis. It is found that equity incentives positively affect the financial performance of new energy enterprises as a whole. In terms of the choice of equity incentive contract elements, the influence is more significant when the granting method is stock options, when the exercise duration is longer, and when the exercise conditions are stricter. As to the degree of influence, the influence of equity incentive method and exercise conditions on the financial performance of new energy enterprises is greater, but the influence of exercise duration is the lowest. Therefore, it is suggested that new energy enterprises can choose more stock options for equity incentives, create stricter exercise conditions and set the duration of the equity incentive scheme between 5 and 10 years with their own characteristics. |
| first_indexed | 2024-04-10T06:05:35Z |
| format | Article |
| id | doaj.art-f2c2caed692049d5ad2f6918f71e3a6b |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-10T06:05:35Z |
| publishDate | 2023-03-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-f2c2caed692049d5ad2f6918f71e3a6b2023-03-03T04:23:22ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2023-03-011110.3389/fenvs.2023.11166651116665Research on the impact of equity incentives on the financial performance of new energy enterprisesKeyu Chen0Yaguai Yu1Yaguai Yu2Pengtao Jiang3Pengtao Jiang4Hanlu Bao5Taohan Ni6Business School, Ningbo University, Ningbo, Zhejiang, ChinaBusiness School, Ningbo University, Ningbo, Zhejiang, ChinaDonghai Academy, Ningbo University, Ningbo, Zhejiang, ChinaNottingham University Business School China, University of Nottingham Ningbo China, Ningbo, Zhejiang, ChinaSchool of Information Science and Engineering, NingboTech University, Ningbo, ChinaBusiness School, Wenzhou-Kean University, Wenzhou, Zhejiang, ChinaNottingham University Business School China, University of Nottingham Ningbo China, Ningbo, Zhejiang, ChinaBased on the data of 253 A-share listed new energy enterprises from 2010–2021, this paper studies the correlations among equity incentives, the three contract elements of equity incentives and the financial performance of new energy enterprises by using fixed-effect regression analysis, and on this basis, Granger causality analysis is applied to determine the causal relationship, and finally, the degree of influence of equity incentives contract elements is further studied by Grey Relational Analysis. It is found that equity incentives positively affect the financial performance of new energy enterprises as a whole. In terms of the choice of equity incentive contract elements, the influence is more significant when the granting method is stock options, when the exercise duration is longer, and when the exercise conditions are stricter. As to the degree of influence, the influence of equity incentive method and exercise conditions on the financial performance of new energy enterprises is greater, but the influence of exercise duration is the lowest. Therefore, it is suggested that new energy enterprises can choose more stock options for equity incentives, create stricter exercise conditions and set the duration of the equity incentive scheme between 5 and 10 years with their own characteristics.https://www.frontiersin.org/articles/10.3389/fenvs.2023.1116665/fullequity incentivesfinancial performancenew energy companiescontractual elementsnew energy |
| spellingShingle | Keyu Chen Yaguai Yu Yaguai Yu Pengtao Jiang Pengtao Jiang Hanlu Bao Taohan Ni Research on the impact of equity incentives on the financial performance of new energy enterprises Frontiers in Environmental Science equity incentives financial performance new energy companies contractual elements new energy |
| title | Research on the impact of equity incentives on the financial performance of new energy enterprises |
| title_full | Research on the impact of equity incentives on the financial performance of new energy enterprises |
| title_fullStr | Research on the impact of equity incentives on the financial performance of new energy enterprises |
| title_full_unstemmed | Research on the impact of equity incentives on the financial performance of new energy enterprises |
| title_short | Research on the impact of equity incentives on the financial performance of new energy enterprises |
| title_sort | research on the impact of equity incentives on the financial performance of new energy enterprises |
| topic | equity incentives financial performance new energy companies contractual elements new energy |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1116665/full |
| work_keys_str_mv | AT keyuchen researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT yaguaiyu researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT yaguaiyu researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT pengtaojiang researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT pengtaojiang researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT hanlubao researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises AT taohanni researchontheimpactofequityincentivesonthefinancialperformanceofnewenergyenterprises |