This paper studies the effects of equity incentive on the listed companies of Chinese stock market. We discuss how the equity incentive affects the performance indicators of the companies in dif-ferent exercise stages. Based on the hypothesis testing theory of statistics, we compare the com-panies’ average turnover before and after the implementation of equity incentive, in order to dis-cuss how the equity incentive affects the size of these companies. According to the principles of econometrics, we choose the profit and the rate of return (ROE) as the explained variables sepa-rately, the different exercise stages of the equity incentive as the dummy explanatory variables to establish regression models. The research results show that the equity incentive implemented by the listed companies in Chinese stock market has promoting effects in a degree on the performance of the companies, but the effects show unstable at later stages.