Research On Related Problems Of Share-based Payment

Share-based payment, as a kind of incentive mechanism, has developed quite prevalent for half a century. To a certain extent, share-based payment has promoted economic prosperity, especially, has made high-tech industry develop rapidly in the last thirty years. In the early 1990s, along with the deepening of the state-owned enterprises reform, China began to introduce equity incentive mechanism gradually. The share-trading reform which began in 2005, the amendments of the Company Law, and a series of provisions which were promulgated by China Securities Regulatory Commission and State-owned Assets Supervision and Administration Commission of the State Council, all of these provide a good political and legal environment for share-based payment implementation in China. Share-based payment develops in full swing in China. In front of such a feast, we need a rational thinking about share-based payment.The current thesis consists of 5 chapters as follows:Chapter1 gives a general description of the origin and development of share-based payment. And then, according to the IFRS2, SFAS123r and CAS11, the chapter explores the scope of share-based payment. Finally, the chapter goes on to examine the basic characteristics and components of share-based payment.Chapter2 does a theoretical analysis from the angles of client-agent relationship theory, enterprise contract incompleteness theory and human capital ownership theory. Then derives a conclusion from the analysis: the enterprise owner should let his employees enjoy enterprise surplus claim, which is, carrying out the share-based payment plan. Finally, chapter 2 analyses the positive and negative effects of share-based payment, and point out it is necessary and important to notice and avoid its negative impact.Chapter3 discusses the characteristics of various kinds of share-based payment. The chapter introduces four main kinds of share-based payment: employee stock ownership plans, stock option, restricted stock, phantom stock plan. Then, the chapter does a comparison of different kinds of share-based payment. As each kind of share-based payment has its own applicability, only has a clear understanding of each kind of them, could the implementation of share-based payment be a success. Therefore, it is important for enterprises to study share-based payment plan, and choose the right plan on the basis of the situation of each enterprise.Chapter4 explores the accounting treatment of share-based payment according to its economic nature. On the basis of the definitions of accounting recognition and cost, liability and equity, the paper try to find which subject should the share-based payment belong to. The next part of the chapter explores the attributes of the fair value measurement, and examines its applicability as measurement of share-based payment. Finally, the chapter discusses the confirmation of measurement date.Chapter5 examines the current situation of share-based payment in China from the angles of company governance structure, market and legal environment. On the base of cognition of current situation, the chapter identifies the problems of share-based payment implementation in China, and makes related suggestions.