Comparative Study Of Stock Option And Restricted Stock About Incentive Effect

90 20th century, equity incentive system which reconcile contradictory of the separation of ownership and management between owners and operators rise in the world. In China, with the rapid economic development, the establishment of modern corporate system, company gradually realized the separation of ownership and management. In the foreign advanced management experience introduction of the process,equity incentive which effectively alleviate the agency conflict and play a long-term incentive effectiveness are being borrowed by China's enterprises.This paper directed towards the two main the subject matters of motivation that stock options and restricted stock introduced by the listed companies in china to compare different equity incentive effect on firm performance. The combination of theoretical and empirical analysis of the research methods are used in this paper. First, the subjects of different incentives are analysized from these aspects of their properties, values determined, the impact on the financial statements, cost and tax treatment. in the next place,using 2006-2009 Shanghai and Shenzhen stocks 101 listed companies data which have carried out stock equity incentive from statistical database WIND and CCER,a total of 240 data samples as the study object,compare and analysize listed companies incentive effect on stock options and restricted stock. Respectively, from the nature of the different equity in the incentive population, different subject matters of motivation and different source ways of the stock comparing the incentive effect of the subjects. The following conclusions of the study were obtained that there are significant differences about performance in enterprises of the nature of the different equity, of different subject matters of motivation and of different source ways of the stock. With regard to the change of selective subject of state-owned enterprises in conclusions and descriptive statistics, through analysizing Original sample, the conclusion that the change may be due to lower executive ownership percentage and get lower and lower is obtained.