Abstract: In order to address “sample-selection bias”, we employ propensity score matching method to examine the duration of equity incentive effects under a time frame of six years. The results show that: as a whole, the ROE and Tobin's Q of the incentive group are significantly higher than those of the controlled samples, which means equity incentive can effectively improve the corporates’ financial performance and market value. The ROE of incentive group is significantly higher than the controlled samples for after the implementation of equity incentive, but gradually shows no difference after the third year, which indicates that equity incentive’s promotion on financial performance can last for three years. Tobin's Q of incentive group is indifferent from the controlled group in the first year of implementation, however, during the next four years, it is significantly higher than the controlled samples, which means equity incentive exerts a persistent promotion on corporates’ market value for four years, while exists a one-year time lagged effect.