The Implementation Of Stock Options By Chinese Hi-tech Listed Companies

Due to the show-how of foreign success and the demand of enterprises' institution reform, stock option scheme is introduced to domestic hi-tech listed companies recently. But there is much puzzlement about the implementation of stock option scheme in the practice and in the theory.Firstly, as an enterprises' inside institutional arrangement, the occurrence and development of stock option scheme is related to the boom of hi-tech industries. What is the relationship between hi-tech industries and stock option scheme, or why hi-tech industries need stock option plans? To explain this question, analyses on the features of labor capital and innovation are needed. Because of the difficult assessment and tight teamwork of innovation, the private possessing and professional knowledge of labor capital, stock option scheme necessarily becomes an undirected method to value the labor capital of hi-tech industries and an inside property arrangement to incite innovation.Secondly, there are great differences between stock option plans of Chinese enterprises and those of American enterprises by comparing them. Why do the differences occur? The answer involves the analyses from the deeper hierarchy. We know that an institutional arrangement can function just in the interaction by other institutional arrangements under a given environment. So, in order to understand their differences, analyses on their institutional environments are needed. By these analyses, we find that the problem of executing stock option scheme by Chinese hi-tech listed companies is due to the deficiency of institutional environment. Therefore, the thesis analyzes the impact of our institutional environment to stock option scheme, surrounding its institutional requisitions, from the effectiveness of stock market, the perfectibility of corporate governance, the soundness of related laws and regulations. So providing references and policy suggestions for the implementation of stock option scheme to Chinese hi-tech listed companies is the intention and significance of this thesis.