Study On Application Of Executive Stock Option In China

With the development of economic and the extending of enterprises' scope, it brought about an observable characteristic of modern enterprises: the separation of ownership and operation right. The enterprise is owned by many shareholders and is operated by managers. In fact the senior managers control the whole enterprise's operation. During the decision-making, there exists the difference between the shareholders and managers when it might be the case that the managers act as opposed to the benefits of shareholders - it arises to the agency problem. The key factor regarding this problem is to regulate the operation of the managers as the expectations of shareholders. Therefore it is important to establish prompting system as its core is to design the remuneration model. And the optimal way to solve this problem is the implementation of Executive Stock Option (ESO). To learn about the experiences in setting up and implementation of ESO from the developed countries, and build a ESO system with Chinese characteristics that best fits us, we need to delve into it and give an analysis to find out problems, so that we can grasp the essence of this system and make better use of it in the reform of our companies. The purpose of this dissertation is to discuss the relevant problems of the implementation of ESO in China depending on the normative research method and the principle combined between innovation and experiences. The dissertation is included five chapters.Chapter 1 - The Theory of Executive Stock Option (ESO)It is the basic part of this dissertation which is mainly explained the basic concept, factors and characteristics of ESO. And it discussed the roles of ESO from the positive and negative aspects.Chapter 2 - The Practice and implication of ESOESO is originated from America where has an intense competitive circumstance. And it became the significant stimulant of the development of all enterprises. In America, it is very popular to practise the ESO system in the listed co., hightechnical co. In this chapter, it is mainly discussed that how it implemented in America and which implications it brought out.Chapter 3 - The necessity and current research of the practice ESO in China Chapter 3, 4, 5 are the emphasis of this dissertation. In this chapter, it is discussed the necessity of the implementation of ESO in China. Then concluded and evaluated the actuality and the model of the implementation of ESO in China: There are various natures of ESO which are all combined with the actuality of those areas respectively. However, it is not the original meaning of ESO in nature but the option promoting system. It is formed under the reform of current system and legal framework in China. And it is the Chinese characteristic option prompting system. Chapter 4 - The Practice and solution of the practice ESO in China There exist some problems regarding China's ESO in terms of its legal framework, government regulation, corporate structure, capital market, as well as the professional manager's market. A detailed analysis regarding the above problems is carried out in this section, and some suggestions are given to ensure that ESO is carried out successfully in China.Chapter 5 - The relevant accounting researchThe relevant accounting systems, for example the recording, calculating and disclosing and so on are the necessarily guarantee for the practice of option stimulate system. Furthermore, the accounting systems of ESO are the main body of the regulation of ESO. Therefore, this chapter is specified on the research of relevant accounting problems.