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Study on the Result of Execution Stock Option as an Incentive of the Listed Companies in China

Author: ZuoLing
Tutor: WuChangZuo
School: Liaoning University
Course: Accounting
Keywords: Listed companies Stock Option Incentive Effect
CLC: F276.6;F224
Type: Master's thesis
Year: 2011
Downloads: 195
Quote: 0
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Abstract


One of the features of the modern corporate system is the separation of ownership and management rights, incentive stock options to solve the principal - agent problem in this case, the incentive system. Practice has proved that many years after the developed countries, it is to achieve long-term incentives of managers to avoid short-term behavior, as well as an effective way to improve company performance and competitiveness. China in the 1990s, the introduction of this incentive system, the beginning has been at the exploratory stage. With the advance of the 2005 split share structure reform to solve the issue of shares tradable stock options the true sense of it possible in China. Then, the amendment of the Law, Securities Law and other relevant laws, as well as listed companies equity incentive management (tentative) \So far, China's implementation of incentive stock options has been nearly 20 years, gradually get more and more recognized stock option incentive. But we should also see, like two sides of the same coin, incentive stock options there are also some negative effects. In the context of the internal and external environment in China's capital market differences, research incentive stock options of the status of implementation and effect, is conducive to more rationally and effectively play its positive effects, to avoid negative effects. In addition, to further improve the corporate governance structure of listed companies in China, improve operational efficiency, better services for economic development, but also has a special theoretical and practical significance. Text section of this article mainly includes four aspects. First, the basic theory of incentive stock options are described. Second review of incentive stock options in the country's development course, and by the Shanghai and Shenzhen A-share between 2006-2010 stock option incentive of 41 profiles of public companies and the description and analysis of the incentive programs, to show our listed The company implemented the status of the stock option incentive. In addition, through the rational screening, selected 34 listed companies as the samples, the use of regression analysis, the sample proportion of incentive, incentive relationship between the strength and performance of the company, respectively, an empirical test. The results show that there is a significant positive correlation between both the results of implementation of incentive stock options to enhance the role of the performance of listed companies has played a certain. On this basis, the end of this article attempts to put forward corresponding recommendations, with intent to cause a deeper level of attention and discussion, in order to give full play to the role of incentive stock options.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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