Equity Incentive Effect For Senior Executives Of Listed Companies In China

Incentive problem is an important issue that management circlekeeps exploring, it is a global and permanent subject, it is also an urgentproblem to be solved that most of Chinese enterprise face especially forChinese state-owned enterprise and listed company. As an effectivelong-run incentive mechanism tacking with all kinds of principal-agentproblems in companies ,equity incentive mechanism has been widelyused in modern western companies since 1980's last century and wonprominent success .Since 1990's,domestic researchers and companiesbegin to investigate this kind of incentive mechanism and put in intopractical application .Meanwhile there has been a lot of articles on how todesign improve and extend the implement of equity incentive mechanismin literature. However considering the present development stage ofChinese economy, one may doubt this kind of incentive mechanism maybring the same satisfying result in Chinese practical environment just as itdid in its western application .As we know, although equity incentivemechanism theory has been well developed, its application situations inChina would be quite different from its western counterpart. In order toproduce a better effect of the stock-based incentive mechanism in ourcountry, this paper focuses on the senior executive's stock-basedincentive issue in our listed company and reviews the relation between itand the achievement of the company, through positive research the authorfinds out the crux of the irrelevant between them and puts forward someelementary suggestions on the perfection of the stock-based incentive ofthe listed company's senior executives in our country. This thesis carries on research to encourage effect of the seniorexecutive's stock-based incentive of the listed company from two respectsof the theory and real example. The research of this thesis set out from theinherent logic relation between the development and inside of the effectand market environment to manage the inherent logic relation ofmechanisms and set out from senior executive's stock right of listedcompany, in encourage discussion and foundation of the analysis offormation mechanism of effect launch to listed company theoreticalfoundation and stock right that stock right encourage. The purpose of this paper is trying to reveal the present applicationperformance of equity incentive mechanism in China through empiricalresearch. And based on this, we go further on to analyze the underlyingreasons of its present performance. After introducing the basic conceptsand fundamental principles of equity incentive mechanism theory, wepick up all companies of the year of 1999—2001, which have adoptedequity incentive mechanism as the basic sample. Whether and structure getting clear, full text divide into six chapteraltogether. Chapter one the introduction, have pointed out the researchbackground of the article and encourage the research current situation ofthe effect and frame of studying of this text domestic and internationallyabout the stock right. Chapter two a theoretical research part, should expound the factpartly senior executive's stock right of listed company encourages theeconomics basis that is produced: Property right theory and agreementtheory, theory of agency by agreement and capital of manpower. Thenderived out senior executive's stock right of listed company andencouraged producing the mechanism which encourages the effect on thisbasis: Good market economy environment and sound inside controlmechanism whether stock right encourage precondition that effect giveplay to, for after last kinds of theory frame and analyzing tool of partlyanalyzing. Chapter three encourage implementing the current situation todescribe to senior executive's stock right of listed company of our country,and of our country mode that stock right encourage and description ofevaluation index and characteristic analyze set out from of our countrysystem background that stock right encourage, senior executive of listedcompany, draw the listed company of our country and implement thestock...