The Empirical Analysis Of Stock Encourage And Performance Of Company

Stock Encourage is a common way for the listed companies. Since the 1950s, Stock Encourage was born in the USA and widely used in the management encourage.In China, the usage of Stock Encourage was a bit later .Because of the equity division reform, which has the uncirculated stockholders and circulated stockholders. The uncirculated stocks and the circulate stocks are the same shares, but they have different authority. This phenomenon restricts the development of security market, and twist the mechanism of security price .The equity division reform leads to a high speculate characteristic in the security market.The definition is the first step of any scientific research .This essay is designed to confirm the definition of Stock Encourage .And then there is a literature review, which mainly reviewed the Stock Encourage. The main point of this part is commenting the empirical analysis about the Stock Encourage. Next , introduce the effect mechanism and the encourage pattern .At first ,summary the theory basis of the Stock Encourage. The Stock Encourage build upon the Entrust–Agency theory, Human Capital theory, Trade Expenses theory.After summary up the theories, we analysis the present situation of the Stock Encourage in China .There is a statistics analysis about the management stock encourage revenue .Statistics the promotion of the listed companies. Senior managements are the mainly encourage objects. Director board is the main body in carrying out the Stock Encourage plans. On the basis of summarying up the results of previous studies and research, in this paper, 26 listed companies of 2007 in Shanghai and Shenzhen stock market are choosed. The empirical analysis define the ROE as the dependent variable , and define the Stock Encourage Revenue as independent variable.The empirical results showing that :the Stock Encourage play a positive role in improving the performance, but the effect is not notable. The reasons are: first, the effective of the security market is poor, so that the share price links a little to the company performance ; second ,the administer structure is unentired, the Stock Encourage plans are short of independence; at last ,the examine system for the Stock Encourage is uncompleted.The innovation of this paper :first, take measures to enhance the efficiency of the security market in order to build a strong connection between the security price and the company performance; second, to complete the administer structure .Establish the salary management board ,which design the Stock Encourage plan, and keeps the plans independent ;last, consummate the examine systems for the Stock Encourage.