Abstract: This paper selects 1484 listed companies and 249 listed companies which declare and implement the equity incentive plan in the period of 2008－2014，and examines the effect of equity incentive on investment efficiency from the two aspects of equity incentive plan implementation and equity incentive level.We find that the implementation of equity incentive plan improves the efficiency of investment,both in alleviating the underinvestment and in inhibiting the overinvestment，and that the equity incentive levels of executives is negatively correlated with inefficient investment and underinvestment，but have     Ushaped curvilinear relationship with overinvestment，where the turning point lies in about 51%.So,on the basis of comprehensively summarizing the relevant reform experience at home and abroad,we should deepen the reform of executive equity incentive,and improve the equity incentive system and related supporting policies and measures to prevent the alienation of equity incentive reform.For the listed companies that have already implemented equity incentive plans,we should improve the proportion of equity incentive granted to the executives,which would alleviate the underinvestment and inhibit the overinvestment to improve the investment efficiency of listed companies.

Key words: Equity Incentive Plan; Incentive Level of Executives; Investment Efficiency; Underinvestment; Overinvestment