Study On Relationships Between Stock Option Incentive To Operators And Corporate Performance In Small And Medium Listed Enterprises

With the rapid development of SMEs in China, more and more SMEs are becoming listed. Since the SMEs domain was set up in Shenzhen stock market in 2004, SMEs have been gaining extra attention as a cosset in stock markets. The role of operators is quite critical in small and medium listed enterprises, but the agent problem is always the focus plague corporate proprietors badly. Under this circumstance, the stock option incentive to operators is attracting attention, proprietors of SMEs anticipate solving the long-term incentive problems to operators via implementing the stock option incentives in order to boost the corporate performance at length. In light of these, doing research on relationships between the stock option incentive to operators and corporate performance in small and medium listed enterprises has far-reaching implication to our government as well as SMEs in China. The main body of this paper includes four parts:The introduction part illustrates background and significance of choosing this subject, confines the research subject and briefly introduces the main content, furthermore puts forward the methodology of doing this research, Also enumerates the five theoretical basis of stock option incentive, namely corporate governance theory,agent theory,human capital property right theory,theory of the right to get surplus value as well as restrictive and incentive theory.Ultimately we summarize the research results on relationships between stock option incentive to operators and corporate performance. The second chapter analyzes the implementation of stock option incentive to operators in SMEs theoretically, including the characters of SMEs in China,the emergence and development of stock option incentive at home and abroad,the cognizance of stock option incentive to operators,the effects analysis as well as the choice of mode of stock option incentive. The thrid chapter analyzes the effecting mechanism of three modes of stock option incentives to operators in SMEs on corporate performance, also we illustrates the internal as well as external effecting factors of the final outcome of implementation. The forth chapter makes the empirical study on that relationships, and finally we put forward some suggestions concerning how to improve the implementation of stock option incentive to operators in SMEs. In the end, we summarize the main conclusion.According to our research, with the development of domestic capital market and related statutes, the incentive effects of stock option to operators in SMEs are boosting up, so is the positive relations between that and corporate performance. Our study has certain referential value on the enaction of related policies for our government as well as the implementation of stock option incentive in small and medium listed enterprises.