| The Employee Stock Option emerged in US in the 1950s. As a long-term incentive system, in possession of the distinct superiority on incentive effect and cost, Employee Stock Option played an important role in productivity growth and technological innovation among US companies in the 1990s. In our country, the implementation of Employee Stock Option incentives was introduced until the late-1990s,because of the different national condition from the Western country and the relatively underdeveloped market economy. Accompanied by the rapid development of securities markets and enhance of the company's overall performance, some companies began to implement the stock option incentives. At present, according to statistics,10% companies has applied the stock option incentive plan in Shanghai and Shenzhen stock market, among which are 10,000,000 shares at least. However, Employee Stock Option Incentive is in the beginning and exploratory stage in China. It is the problem that how to choose the econometric models in many problems discussed.This article tries to find out a model which is more fit to our situation through learning from Employee Stock Option Accounting Theory and research ideas, combining with the characteristics of China's securities market and using the methods such as theoretical analysis, comparative analysis and so on. Then we discuss the parameter estimation of the model.This paper firstly introduces the econometric model of fair value of stock options as follows: Black-Scholes model, binomial model, Growth - commutation model and minimum value model. Through analyzing the advantages and disadvantages of each model, we get that binomial model has greater flexibility for Employee Stock Option. Finally,we analyzes why the binomial model is better appropriate for the measurement of Employee Stock Option and how to estimate the parameter of the model. We use the analysis comparison method to obtain that the method of this paper is effective through the instance. |
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