Theory Of Executive Stock Options And Related Accounting Issues

The biggest character of modern enterprises is separation of ownership and manager rights, and the relation of owners and managers is agent. It is unsymmetrical information and uncompleted agreement between owners and managers that make "the agency problem" which managers damage owners' benefit. How to inspire and restrain the behavior of manager is one of the core problems of modern enterprises. By twenty years test in the west, Executive Stock Option is one of the most effective stimulating systems. It obviously promotes the development of enterprise and national economy.At present, Executive Stock Option has been carried out in many list corporations, which bring positive results. However, there are many problems in Executive Stock Option. For example, there is obstacle about people consciousness and law, which weaken long inspiration effect of Executive Stock Option. Based on foreign mature theory and practice, we should design Executive Stock Option suitable to china.The whole paper is divided into four parts:Chapter 1 elaborates the origin and effect of Executive Stock Option;Chapter 2 discusses necessity and possibility of Executive Stock Option;Chapter 3 introduces the development of Executive Stock Option in china;Chapter 4 discusses some accounting problem about Executive Stock Option.