Study Of Stock Option Incentive Mechanism In China's Enterprises

This thesis starts with the formation and development of enterprises in the modern company at first and follows the production of enterprises, enterprise trust and agent relation that how trust logic order in agent relation is dealt with. Then the R.H.Kers'law, group's production and principal-agent relation, etc. in the western countries are presented. Afterwards it is pointed that in modern enterprises the distribution of the right, obligation between the client and agent is determined by company's governance structure. Comparison and analysis of western company's governance structure are made and then it is pointed that valid company basic framing should include fundamental structures. By use of he arrangement of the incentive mechanism in the frame the stock option is proposed. And it is also pointed that in view of the company's governance structure implementing a proper incentive mechanism is solving modern enterprises' modes and development. Therefore, the stock option has very important realistic meanings in the process of enterprises' reforming in our country. The dissertation through the formation and development of stock option in U.S.A. , and Hong Kong and presentation of three modes of stock options in Beijing, Shanghai and Wuhan points out that the stock option has become a popular inventive mode. After that, through the function of the stock option incentive mechanism and analysis of other mode of incentives the dissertation points out that realizing the stock option in our country is neccesary.Case study shows that the stock option has a two-side edge.Finally, through a design of standardized stock option in connection with the difficulties in realization of stock option it is proposed that by selecting a virtual stock option the obstacles faced by current three modes of stock options can be solved and thus a particular virtual stock option is designed.