| As one of the most important incentive means, stock option is widely used in western developed countries. It plays an important role in solving incentive problems, enhancing enterprise's competitive position and contributes to economy development. Based on modern micro economy theory and human capital theory, both study of stock option and practice have been in a mature stage. In order to solve incentive problems of listed companies, studying stock options will have great impact on related theories and real-life practice.With brief introduction of theories, this article is focused on the effects of stock options on the listed companies to solve incentive problems. The methods of study include theory study and practice analysis, quantitative analysis and qualitative analysis.1,Incentive problems of listed companies1.1 Theories of incentive problemsStock options is based on Micro information economy and human capital theory developed by western scholars in the 1950s and 1960s.Micro information economy theory is studying how to control the actions of both sides that involved in under uncertain situations with different information. When information is different to each side, deal rules and contract are needed to insure that the deal can be smoothly made. The key points are "adverse select", "moral risk" and "principalï¼agent". To avoid risks brought by moral problems, the most important thing is to deal with unavailable information, namely how to develop effective contracts to settle the conflicts between clients and deputies caused by different advantages which roots in the separation of ownership and the actual right of control.In the later 1950s, human capital theory was put forward by western developed countries. This theory takes human capital as a very important production factor that will bring far more profits than general materials. In addition, ownership of human capital enables it to share surplus. Incentive is the core concept of human capital management.With development of economy, incentive theory shows new tendency, for example, more attention is paid to how to inspirit executives, develop methods to inspirit and control executives according to management task and transfer from studying incentive methods to economy mechanism.1.2 the reason of the coming of incentive problems Incentive problems is caused by modern corporation system which results in Separation of ownership and operation right. The problems include status of endeavor, time limit problems, difference of risk prejudice and usage of assets. Incentive problems of our listed companies exist in following aspects:(1) Managers are controlled by state big shareholders, and operation targets are distorted;(2) Stated owned stock lacking real deputy cause no one is responsible for inspiriting; (3) the board is not fully independent, and no one inspires managers to work hard;(4) supervisor committee can't fully take their responsibility for supervising; (5) reward system is too limited to have enough impacts on directors and senior managers.2,Option and its correlation with incentive system of listed companies. 2.1Meaning of optionStock option in this article is referred to Executive Stock Option. According to definition of American National Employee Ownership Center, stock option is the right granted to the employee to buy company's stock at fixed cost with approved quantity in stated coming years. Stock option have played important role in the development of American economy, and was regarded as "the second revolution after corporation system." Features of stock option are: It is a kind of right instead of obligation; price is fixed; Value appeases when the executives improve the performance of the company and the price of the company's stock rise.Generally speaking, plan of stock option includes beneficiary, period of validity, available sum, implementing.2.2stock option's effects on listed companyStock option's effects on listed company are as follows:(1) settle the problems... |
