The Research On Stock Option Incentive For The Perfection Of The Rationality Of Corporate Governance Structure

The efficacy of corporate governance is the core of corporation that is supposed one of sufficient form of modern enterprise institution. To deal with agency problem, the forms of corporate governance exist. In essence, corporate governance is contracts of disposition of ownership of enterprise. To finish this contract of disposition is just how to perfect the rationality of corporate governance, and the building of stock-based incentive plans is the key of solving this problem. Because stock option incentive plans is one part of corporate governance, it is the key method which can deal with problem between shareholders and operators. How to build up stock option incentive plans, how to unleash the efficiency of stock option incentive is the core of perfecting the rationality of corporation governance.In 2005 split share structure reform carried through, in according with administrative measure on equity incentive plan enacted. The listed companies'enthusiasm to explore the incentive mechanism was ignited again in the better surrounding. However, whether stock-based incentive really effects, whether it effects in corporate governance, so based on that background, this paper researches relation between equity incentive mechanism and the listed companies'performance by empirical research.. Through reveal the relation between comprehensive performance and equity incentive by empirical research, get the best interval of stock holding by governance, this interval is also the best scale of making stock-based incentive plans and the core of perfecting rationality of corporation governance.After researching correlative literature, basic concepts, research method and equity incentive actuality in China, We pick up some A-shared companies in Shanghai and Shenzhen stock market which have adopted equity incentive mechanism and fulfilled share structure reform as basic sample. By using the method of factor analysis, we get the composite performance index of these companies and hence have a linear regression analysis to study the relativity between incentive stock proportion and those companies performance. Based on linear regression analysis, we classifying the different incentive stock proportion and type to illustrate the efficiency of equity incentive mechanism, we draw a conclusion as that of linear regression analysis. We propose some suggestion for perfecting the rationality of corporation governance.