Study On Stock Option Incentive Of Securities Listed Companies In China

As a long-term incentive system, stock option incentive links the personal interests of the operators with business interests closely by allowing the operators holding the shares of the listed company, and it can inspire the operators to create more values for the enterprise and shareholders.From a global perspective, the most efficient innovation in the incentive system in western countries is the generation and development of stock option.Stock option incentive has significantly improved the western companies’ core competition in the past decades, and coordinates the residual claim with the rights control. However, a series of financial scandals, namely Enron and Worldcom in the late90’s, and the outbreak of the global financial crisis in2007, make people have to reconsider the effects of stock option incentive. Therefore, it is necessary to research stock option incentive in US in order to guide China’s practical operation.As a knowledge-intensive industry, human resources have been concerned, especially those with extensive experience in securities practitioners and senior managers. They are also the determinants of both the increase of stockholder value and the future of the company.However, in a long time, the security company’s corporate governance system is not perfect, lacking of senior management’s long-term incentives, and it leads to lack of the enthusiasm and initiative for the Senior management. They don’t have a long-term business vision affecting long-term development of enterprises. With the maturity of the securities market environment、the fall of non-tradable shares reform and the new "Company Law""Securities law", other relevant laws and regulations, have paved the smooth way for the implementation of stock option incentive system of listed companies in China. What is the effect of stock option incentive in China’s market environment? Whether is there correlation between stock option incentive and corporate performance? This paper argues that it is necessary to research the effect of stock option incentive in domestic security companies deeply and systematically.This paper is divided into five parts:the first part is preface. This part outlines the background and significance of the study, summarizes and discusses domestic and foreign research findings, explains the concepts, principle,basic modes and effects of stock option incentive, then introduces research methods and innovations. The second part is the theoretical foundation. This paper takes the Principal-agency theory, corporate governance theory and human capital theory as the study foundation. This part strengthens understanding the necessity of stock option incentive and provides theoretical basis for further research. The third part is to study the American stock option incentives practice and reference. This part studies the American stock option incentive system’s development, problems of the global financial crisis and reform measures systematically. Through the study on America stock option incentive system, securities companies in china can draw on their experience and thus avoid the problems that may arise in the process of designing the stock option incentive.The fourth part is the empirical analysis.This part analyzes firstly current situation of the stock option incentive in the Securities Listed Companies in our country, and points out the existing incentive system defects and characteristics, then this paper selects CITIC Securities as the research object, using the statistical software SPSS, factor detection methods to analyze the CITIC Securities stock option incentive effects for corporate performance compared with other eight listed securities companies. Empirical results show that the stock option-based incentives had no obvious effects on the performance of CITIC securities, then the paper analyzes the existing problems.The fifth part is the conclusions and suggestions. In this part, the author summarizes the study results of the above every part and proposes several feasible suggestions for solving these problems in the implementation process.