Empirical Research On The Listed Companies’ Stock Option Incentive Mode And Effect In China

As a long-term incentive mechanism，the design of the stock optionincentive of original intention is order to solve the problem of theprincipal-agent in the process of company management. Owners giveoperators a certain number of shares, fundamentally achieving that the benefitof the business operators is consistent with owners, with expecting operatorscan stand on the point of view of the owner with a long-term perspective togovern and manage company. The development of the Chinese stockincentives from2005share reform has entered a rapid developings stage.Especially since2010, the number of listed companies in China whoannounced that they would carry out stock incentives erupt, whether thedesign of content or the standardization of whole have greatly increased. Butthe problem is also emerging endlessly, the thing that stock market crashed in2008and the stock market slumped in2010led the listed company whopreviously have announced the stock incentive plan to give up in large area,and there are parts of the listed company who change share incentive plansinto the company benefits not incentive, showing the our country of equityincentive system design flaws, therefore, exploring suitable for China’ssecurities market and listed the option incentive mode is imperative.This paper is about effects of the stock incentive mode of the listedcompany by empirical research. The author state the related theory, review therelevant literature, summarize the experience, inspiration and reference ofapplication of the stock incentive, illustrate the concept, advantages anddisadvantages of the seven incentive mode, contrast similar mode, analyze thekey elements of the stock incentive and make descriptive statistics of thecondition of stock incentive. After this series of work, taking the idea thatdifferent incentive mode will have a different effect on the listed company’sperformance, we make financial data about2008and2010of21listed companies announced the implementation of stock incentive in2009(including14stock option incentive and7restricted stock incentive)T test matchingsample to by using SPSS software.The empirical analysis conclusion is stock incentives have significantinfluence on improving the performance of listed companies, deep study foundthat stock options has significant influence on the listed company’sperformance, by contrast, the role of restrictive stock, has no significantinfluence on the listed company’s performance.