With 367 listed companies on Shenzhen A SME Board and ChiNext that successfully implemented the executive equity incentive from 2011 to 2019 selected as the research objects, a multiple linear regression model, 2SLS model, and PSM-DID model have thus been constructed for an inquiry into the impact of the executive equity incentive on the performance of SMEs as well as its potential mechanism. The research results show that the executive equity incentive helps to promote the performance of SMEs; as an important driving factor for SMEs to implement the executive equity incentive, the financing constraint plays a part of intermediary role in the relationship between the executive equity incentive and SME performance; after distinguishing the nature of property rights, the equity incentive of executives in state-owned enterprises is characterized with a better performance, with the financing support effect only limited to non-state-owned enterprises; the type and validity of equity incentive exert an asymmetric effect on the performance improvement and financing support effect of the executive equity incentive.