Research On Incentive Mechanism For Stock Options Of SME

With the further progress of the economic reform in China, the enterprise's commissioned-Acting problem gradually emerged. It is an urgent need to solve the problem which is about the client's how to design a set of effective incentive and restraint mechanisms, to maximize the agents in the fight for the maximization of personal interests at the same time to achieve the maximization of profits. Stock options system has been practiced in Western countries for many years, and is regarded as a very good way to resolve manager long-term incentive problems and enhance the competitiveness of companies. As the promotion of the small and middle enterprise equity share reform and the amendments of the "Company Law" in China, "Securities Act" and other relevant laws, it has improved macro environment of small and middle enterprises in China stock options system. The introduction of "Listed Companies Stock Incentive Management Measures"(Trial) has provided good development opportunities and guidelines. However, in recent years looking at the outbreak of a series of false financial events of small and middle enterprises in the United States, we gradually became aware that this system is a "double-edged sword". We should be rationally in-depth research and reasonable improvements of stock options system. The Study focused on the inherent defects arising from the problems of the implementation process, identify problems and sum up lessons learned, to grasp the essence of the stock options system well, for the establishment of stock options system suitable for China and with Chinese characteristics. Therefore, the research of stock options system is a meaningful choice for timeliness, theory and practice.This thesis starts with the basic theory of stock options system, after the implementation of the new "Company Law" and "Equity Incentive Management Measures" in China, the focus analysis for the new situation of stock options incentive practice, based on an empirical analysis of the implementation of stock option, In-depth analysis for the obstacles in the process of the implementation for this system in China. Finally, in light of China national conditions, in the view of the three options of corporate governance, the external environment as well as design aspects, this thesis puts forward corresponding recommendations and the relevant preventive measures to improve stock options system.