A Study On Stock Ownership Incentive Of The Listed Companies In China

Incentive Stock Option as a corporate agency to effectively solve the long-term principal-agent problem, as early as the 1980s, the companies used stock options and other equity incentive model and achieved great success. As to the listed companies in China, the successful solution by the incentive mechanism in the enterprise in developed countries prompts the corresponding administrative department of the government and the listed companies to pay attention to the incentive mechanism. Since the issue of a series of related policies from 2005, Incentive mechanism has been implemented in China for 5 years, an increasing number of listed companies have or plan to launch Incentive mechanism. As a leader which has successful experience from foreign countries, how to implement the stock ownership incentive in China? The emphases of this paper are as bellow:What about the current situation of Incentive mechanism in China? Is there any solution of Incentive mechanism which always work effectively? How to adapt Incentive mechanism to China's actual condition? Is there any negative impact?Based on Principal-agent Theory and Incentive Theory, the paper analyzes the present status in application of Incentive mechanism. As the result of research:To the Commission published "Corporate Equity Incentive Opinion (Trial)" beginning of time, Incentive mechanism of a long gestation period in China has experienced the pilot phase, rectifying and standardizing the maturity of the promotion period, and now is entering a period of development and improvement.It indicates that incentive mechanism of listed companies in China has its own characteristics:Equity Incentive as a major long-term motivate model, compared with state-owned enterprises, private listed companies tend to use equity incentives to achieve the common interests of the owners and managers; the implementation of equity incentive is obvious in the differences of industry and regional in China.We introduce the diversity of GE and Cadbury's long-term incentive program, and in recent years, the development of foreign equity incentives and in-depth analysis of actual trend provide reference for the implementation of our long-term equity incentives.