Analysis On The Value Effect Of Stockholder's Rights Drive For Chinese Listed Company

Stockholder's Rights Drive, as a incentive mechanism, occurs after the separation of the business ownership and management. To a certain extent, this incentive mechanism solve the target inconsistent between the business owners and operators. Because of the difference between the Chinese situation and the developed countries in the West, especially legal system, institutional background and the governance structure of listed companies, when we learn the experience of carrying out the long-term incentive for operators, from the developed countries in the West, whether it would achieve the desired incentive operators work hard to improve the company performance and the effect of the value of the company, which is the core issue of this paper.In this paper, on the basis of analysis for equity-based incentives related theory, and the data of 17 listed companies announcing equity incentive plan in 2006, using the empirical analysis methods to explore this issue, including Event study and DEA methods, then take comparative and logic analysis for the results, with a view to quantify the value effect, for result, Stockholder's Rights Drive made some positive effect for Chinese listed companies, further more, this paper put forward my own views and recommendations for management and hope that will be some revelations.