Empirical Analysis On The Efficiency Of Employees Equity Motivation Of China Listed Company

In the United States, firms are using employee stock options more frequently and in sharply large quantities than just a decade ago. This trend is particular significant for high tech companies, such as Microsoft and Ebay. This great change can amalgamate employee's benefit with company's interest and reduce company's principal-agent cost remarkably. While in China, for the limitation of law system, employee stock options are scarcely used by the listed companies. As China has entered into WTO, China's listed companies will face more rigorous competition from inland and abroad. It's urgent and very necessary for China to loosen policy restriction and allow the listed companies using employee stock options and other stock-based employee compensation plans to motivate and detain their employees, especially senior managers and key technicians.This report attempts to design a completed system of stock options for China's listed companies. The paper includes the following contents:In the first place, In summarizes the domestic and foreign employee stock options, limited the concept of employee stock options, introduced the employee stock options theory basis, and each kind of pattern which drove to employee stock options has been carried on the comparative analysis.Then, Elaborating the domestic and foreign employee stock options historical evolution and the present situation, and the mechanism which drove to the domestic and foreign employee stock options.Thirdly, Taking 2002 2003 and 2004 three years going on the market the company annual report to originate as the data, the union this article thesis center, many aspects which drove to employee stock options be conducted the real diagnosis research, and carries on the standard reason analysis.Fourthly, Questioning exposes which in view of in the real diagnosis research result, puts forward individual countermeasure proposal.