Abstract: Taking the listed companies which announced their equity incentive plans between the year 2006 and 2008 as study subject,this paper treats the equity incentive and ownership concentration as endogenous variables,and then establishes the simultaneous equations,using three-stage least squares to analyze the relationship between equity incentive,ownership concentration and corporate performance. The empirical research shows that:(1)Equity incentive and ownership concentration are determined jointly. The proportion of the two is strongly negative. This proves that they are endogenous.(2)Considering the endogenous variable,the equity incentive does not significantly affect the corporate performance. On the contrary,the corporate performance has significant influence on the equity incentive.(3)There is no significant relation between ownership concentration and corporate performance.