Research On The Stock-based Incentive Of Management And Company Performance

Stock-based incentive is an effective way to solve the problem of Principal-Agent Theory. Indeveloped western countries, the research of stock option incentive is well developed and reachesmaturity. These years in China, the government has put a series of measures to promote stockoption incentive of listed companies, for the cause of improving the corporate governancestructure and company performance. However, In China, we only put this way into practice forabout20years, and at the same time, there are a lot of aspects need improvement. Therefore, theresearch of stock-based incentive of the listed company in China is very meaningful.On the base of the research home and abroad, this paper studies the theory of stock optionincentive. Combining these theories, it does the comprehensive research of present condition ofstock option incentive in high-tech listed enterprises. In the empirical research, it sets theperformance of the company as a dependent variable and the level of stock option incentive as anindependent variable. The conclusion of the empirical research is that the level of stock optionincentive significantly influences the performance of the company. In the end, this paper givessome advices to the implementation of the stock-based incentive. The breakthrough point of thispaper is that it is based on the high-tech listed companies. After the share splitting reform, all theshares owned to the shareholders are tradable and the stock circulation has an enormous room forgrowth. In addition, there is not much study which is based on a special industry, especially in thehigh and new technology industry that needs high growth as well as high-level and talentedpeople. As a result, the research on the stock-based incentive of high-tech listed enterprises ishighly significant.