Empirical Study On The Effect Of The Equity Incentive Of The Listed Company Executive In China

The incentive mechanism of stock options effectively resolved the confusion as aresult of the different interests between owners and managers. Through decades ofdevelopment and growth, in Occident, it was proved to be a very successful long-termincentive mode. Since the equity division reform, it had been taken some empirical studyand analysis by some scholars and experts in our country. What’s more, owing to the lawsand regulations’ enactment on it and the system’s development, the capital market’sconstant perfection, sized enterprises board in Shenzhen and GEM’ growth as well as thestock index and futures’ publication, stock option system gradually held more and moreshare in our listed companies.However, on the other side, the stock option system in our country also brought aboutsome confusion, after all, it happened just a few years. Taking Haier for an example, whichis a large multinational company, the system was taken no more than two years. Althoughthe seniors had made a penetrating study of the related aspects, not many companies hadput the system into effect and the research before was old-fashioned. Therefore, it isnecessary for us to take a further research for stock potion, by which we can not onlyimprove stock option system scientificity and feasibility, but also make the result take animportant effect on the development of China’s listed companies.This article focuses on the theme of the effect of stock option. At the beginning, itstates the background and significance of the managers stock option briefly; and then, itdefines some related concept and discusses the relevant theories of stock option; what’smore, it analyses the progress and course and the question of stock option both in the westand in China; besides, it also gives an empirical study on the enterprises who are taking thesystem through the related analysis, regression analysis and Comparative analysis; Andfinally, it advises about stock option system in the following days in our country. Thispaper aims to analyze the situation and problems of stock option in China and to find thesystem’s development trend, in the hope that it can take some significance for the listedcompany in the way on stock option. Of course, the article also has some defects andinsufficiency. It mostly is based on the data of the listed company bringing stock option inforce recent years, which may lead a superficial knowledge; besides, the number of electedsamples is limited and the quantitative is limited, which could affect the final result.