Review of research on equity incentive effect in China

In recent years, equity incentive is becoming a hot spot of research at home and abroad. This article reviews previous classic research on equity incentive after releasing The Listed Companies Incentive Management Approach in 2006 in China. By classifying the literature in firm level and individual level and summarizing the effects of equity incentives on firm performance, earnings management, dividend payout, innovation input and retention, etc, the study provides some implications for future studies in related area.