Research Of The Status And Effect Of Incentive Mechanism Of Stock Option For Listed Companies In China

Motivation for manager is an important component of corporate governance mechanism. With the improvement of corporate governance mechanism in China, more and more companies involve in the stock ownership motivation. In actual implementation, however, there exit many distinct effects in different enterprise because of different motivation mode and domestic surrounding. Therefore, it is important to rightly analyze and appraise the actual effect of motivation and search the right way to solve the problem.The paper firstly gives a brief review on the stock ownership motivation theory at home and abroad, current research situation and different stock ownership motivation modes. Then, while relying on the financial data of eighty listed companies and using comparative analysis method the paper analyzes the financial situation of listed companies implementing incentive mechanism of stock option, relying on the stock price data of forty-three listed companies and using event study method the paper analyzes the reflection of market to the renouncement of the implementation of incentive mechanism of stock option. The result reviews that the implementation of incentive mechanism of stock option has not raised the financial situation of the listed companies, but the market gives the positive signal to that event in the short run.The study of this paper, not only promotes an idea of analyzing and evaluating the effect of implementing incentive mechanism of stock option, but provides useful reference of implementing incentive mechanism of stock option. So the paper has more important both theoretical and practical significance.