Operators' Incentive Effect Of Shares Of Listed Companies In China: A Theoretical And Empirical Analysis

With the advance of the equity division reform and the Promulgation of The Measures Governing Equity Incentive Plans of Listed Companies (For Trial Implementation), an increasing number of listed companies will put equity incentive plan into effect after the completion of the equity division reform. The separation of enterprise management right and ownership produced the problem of commission– agent. As an effective long-run incentive mechanism tacking with all kinds of principal-agent problems in companies, equity incentive mechanism has been widely used in modern western companies since 1980's last century and won prominent success. Since 1990's, domestic researchers and companies begin to investigate this kind of incentive mechanism and put it into practical application. Meanwhile there have been a lot of articles on how to design, improve and extend the implement of equity incentive mechanism in literature. However considering the present development stage of Chinese economy, one may doubt this kind of incentive mechanism may bring the same satisfying result in Chinese practical environment just as it did in its western application. As we know, although equity incentive mechanism has been well developed, its application situations in China would be quite different from its western counterpart. In order to produce a better effect of the stock-based incentive mechanism in our country, this paper focuses on the senior executive's stock-based incentive issue in our listed company and reviews the relation between it and the achievement of the company, through positive research the author finds out the crux of the irrelevant between them and puts forward some elementary suggestions on the perfection of the stock-based incentive of the listed company's senior executives in our country.This thesis carries on research to encourage effect of the senior executive's stock-based incentive of the listed company from two respects of the theory and real example. The research of this thesis set out from the inherent logic relation between the development and inside of the effect and market environment to manage the inherent logic relation of mechanisms and set out from senior executive's stock right of listed company, in encourage discussion and foundation of the analysis of formation mechanism of effect launch to listed company theoretical foundation and stock right that stock right encourage.The purpose of this paper is trying to reveal the present application performance of equity incentive mechanism in China through empirical research. And based on this, we go further on to analyze the underlying reasons of its present performance. After introducing the basic concepts and fundamental principles of equity incentive mechanism theory, we pick up the companies of the years of 2002—2005, which have adopted equity incentive mechanism as the basic sample to analyze the change before and after senior executive's stock right encourage, using the methods of statistic analysis and least square procedure.To make research convenient and structure clear, the paper is divided into five chapter altogether.Chapter one is the part of foreword, pointing out the research background of the paper and the current research situation of the effect and frame of studying of this thesis domestic and internationally about the stock right encouraging.Chapter two is the theoretical research part, introducing the theory basis of senior executive's stock right encourages of listed company, which is: Property right theory and agreement theory, theory of agency by agreement and capital of manpower etc. Then deriving out the meaning and features of senior executive's stock right encourages of listed company and its effect to enterprises.Chapter three summarizes stock right encourages implementing, analyzing the current situation and problem to describe to senior executive's stock right of listed company of our country, and of our country mode that stock right encourage and description of evaluation index and characteristic analyze set out from of our country system background that stock right encourage. Then proving the effect of stock right encourages through a real case of Wanke company.Chapter four is a positive research part, has encouraged carrying on the real example with characteristic with the achievement with relatively studying to the stock right that the senior executive of listed company of our country implemented, have drawn a conclusion: The stock right of listed company of our country encourages being independent with the achievement, and different trades and different incentive modes have different encouragement effects, different encouragement target ranges have different encouragement effects too. Finally pointing out the reason that stock right encourages effort is obscure through the least square method.Chapter five on the basis of the thing that theory analysis and real example are analyzed, control from inside mechanism and outside market environment two visual angle stock right in our country is it go on reason analyze with achievement independent phenomenon to encourage, have pointed out the external economy environment --Capital market, manager's market and inside manage the mechanism–Administration structure and stock right encourage the influence that design the existing problem and encouraging the effect to give play to the stock right. The legal environment and economic environment that microscopically environment refers to mainly; the microenvironment means mainly the administration structure and inside of the company control the construction of the system. Then also to formulation subject, carry out subject, authoritativeness and examine evaluation criterion offer the suggestion of perfecting, stock right of incentive system.This thesis on the basis of theoretical research, combining senior executive of Chinese listed company actual conditions that stock right encourages carrying on the positive research, analyzing and explaining issue of practice with theory to strive, verify and develop the theory to come with real example to make every effort at the same time. So, the combination of theoretical research and positive research is the characteristic of composing a piece of writing of this thesis. Main views and contributions are as follows:1. This thesis has probed into the formation mechanism of encouraging the effect of senior executive's stock right of listed company, drawing senior executive's stock right of listed company encourages the full play of the effect to possess two conditions. Firstly, inside of company control mechanism, including clear property relations and perfect company mechanism of controlling; Secondly, the external market economy condition that the stock right encourages, including effective capital market and sound manager appraise the market. The former is a foundation of setting up the incentive mechanism of stock right, the latter produces with the development of social economy. It is the essential condition of setting up senior executive's stock right incentive mechanism.2. The thesis through carrying on overall positive research to achievement and relation that stock right encourages, Chinese listed company (design division, variable of including sample, describing statistics, mate sample the Ts examine etc.), getting the meaning conclusions, which draw lessons from the meaning after obtaining some. Achievement that positive research obtain positive meanings to people intact understanding of our country state and design, stock right of incentive mechanism that stock right encourage, senior executive of listed company.3.This thesis combines stock right encourage formation mechanism of effect, proposing environment and system two respects to improve senior executive design encouraged by stock right. Having proposed improving the administration structure of capital market, manager's market and company from the microscopically environment and micro environmental angle firstly, the formulation subject, stock right of incentive system, authoritativeness and examining evaluation criterions to offer the suggestion of enhancing stock right encourage effect, and put forward to using EVA as the evidence of performance evaluation.