China's Listed Banks Stock Appreciation Rights To The Implementation Of Effects Research

In our country, there is an increasing number of listed companies began to adopt the Stock Appreciation Rights (SARs) for be restricted to buy foreign stocks directly by Chinese citizens and the problem of stock sources, and whether the incentive efficiency of the SARs plan for senior management is significant or not and other issues are attracting wide attention.In this paper, we made a theoretical analysis on the incentive effect and the characteristics of SARs, and compared stock appreciation rights with general equity incentive approach based on economic analysis methods . Combined with principles of Principal-agent theory, we applied the Bank of Communication's variance on governance and management agency costs, the stock market reaction and financial performance to make empirical analysis for the model theoretical analysis, based onFree cash flow hypothesis.Concluded: 1. The SARs plan has a positive incentive effect. 2. The incentive effect of the first year to implement the SARs is more significant. 3. There is over-reaction in H-share market to the honoring of the SARs. There has been an over rate of return on the right line month. This phenomenon indicates that the stock market takes over-reaction to the incident. For this, we think it bases on many reasons, including: the market's listed companies are not satisfied with the long-term incentive plan; the Bank of Communications' SARs program has a loophole; the company's disclosure of incomplete information, etc.Finally, the paper proposes some policy suggestions to the implementation of the SARs in China's listed bank to promote the SARs make some good contributions in the future.