Research On The Stock Option Of Listed Company

In recent years, the pace of building a modern enterprise system is faster and faster in China. The modern enterprise system requires not only well-built corporate governance structure, but also matched incentive and restraint mechanisms. The mechanism of the stock options discussed in this paper is a kind of long-term incentives, and has also been widely used in foreign companies. It was first applied in PFIZER in the United States in 1952, appeared in the Chicago Board Options Exchange (CEBO) in 1973,and was treated as one of executive pays among common companies in 1980s. The system design that closely integrates combines' interests and managers' interests has been playing a strong incentive effect and promoting the rapid development of U.S. companies.One of the features of the modern enterprise system is the separation of ownership and power of operation, which lead to a broad of existence of entrustment relationship in modern companies. However, one big shortcoming of the entrustment relationship is that it is easy to bring in managers' moral hazard. Meanwhile, as one kind of incentive, the stock options play a role in binding, and are able to lower the incidence of moral hazard, which could be one of reasons why it is so popular.With the establishment of modern enterprise system, the modern corporate governance structure has been established in the company, but the corresponding pay system is still in its primitive state, which has not triggered directors and officers enthusiasm for work, so that the ethical management of the company risk is relatively large. As a result, directors and executives do not think of the company's development, but only think about how to get gray income. Although some have made great contributions for the company in the initial stage, they may break the low owing to less salary inconsistent with their efforts. Founder of Hongtashan is a typical example. Therefore, it is of great significance in our country to introduce the stock option mechanism.This paper describes the basic principles of the stock option system, does some research on the generation and development of foreign stock option system, and states China's current situation and problems of stock options. It also analyzes factors that affect the stock option system to function well. Therefore, I will propose some ways to solve these problems and hope to make some contribution to the development of stock option system in China.The basic contents of this paper are as follows:The first part is abstract, including the purpose, background, research methods and so on.The second part is the basic theory of stock options. It mainly introduces the concept of options and classification, stock options'concept, features, implementation of the basic processes, action principle and the importance of the need for companies to introduce stock options. Besides, the theoretical basis of stock options is focused here.The third part compares and researches the development of the major nations and regions, including the United States, France, Germany, Japan, and Hong Kong in China.The fourth part states the development status of stock options and problems which mainly focus on corporate law, securities law, accounting standards, tax laws and other environmental problems in the external system.The fifth part is the improvement of the stock option system in our country, which not only discusses recommendations on the company law, securities law, accounting standards, tax laws, but also illustrates the improvement of external related systems.The sixth part is the conclusion of the summary of the full text.