The Research On Effect Of Stock Option Incentives Of Listed Company’s Management

Reasonable equity incentive system is an important way to solve the modern enterprise entrusted with the agency relationship, it helps to solve the agency problem between the shareholders and managers. It can lower the agency cost, and improve operating efficiency of the company, what’s more, retain talents for company, perfect governance structure and stimulus mechanism. In some foreign companies that implement the equity incentive system,the equity incentive system of management is a powerful means of promoting operators form a community of interests with shareholders.Starting from2005, an increasing number of listed companies to implement a management stock incentives, but because of the different stages of China’s market economy, so the incentives faced by our environment and conditions are different, management equity incentive effect under the influence of environment and conditions in which it operates.So,What are the main factors affecting the management equity incentive effect of listed companies. This will be the topic of this thesis.In order to achieve the research objectives of this thesis, carried out the following research:(1) Analysis on the status and characteristics of the management stock incentives. through the is being implemented the A Descriptive Analysis of of the equity incentive of management listed companies on the the in2006-2011years175the overall features. General characteristics and industry characteristics dimensions provides an analysis of current situation of China’s current management equity incentive;(2) Measure the effect of listed company’s management incentive. As2008-2011175listed company for samples using factor analysis and examination on the relationship between175management equity incentive effect of listed companies: an empirical analysis in order to measure effect of listed company’s management incentive;(3) According to the the results of of the analysis, to identify there are What are the main factors of can affect the to the the the the effects of of the management of listed companies equity incentive, and to propose an improved measures based on these factors.Through theoretical analysis and empirical study of full-text, this paper studies of the conclusions reached are:(1) Implemented a management equity incentive performance of listed companies and management stock incentives, firm size has a positive correlation, but on improving the listed company’s performance growth effect was not very significant;(2) Company size, ownership concentration degree and management equity incentives are showing a negative correlation, which increase as the company grows, management matures, improving the company’s performance will become increasingly difficult,while management equity incentive level is automatically optimized to a certain scale, combined with the effects of economies of scale, equity incentive effect will become less pronounced.(3) Company growth and stock incentives were positively correlated. That in order to enable the company to maintain high growth, needs to give the management stock incentives, for executives to hold stock or stock options to promote their companies connected with the development of personal and, through the company’s increased interest of the purposes of personal wealth growth. The performance of the company will grow.(4) Based on the above research findings and other related research results, I believe that, in order to improve the management of equity incentives need to do improve the effectiveness of securities markets, rational design of incentive programme, establishing effective executive selection system and optimizing company ownership concentration and other complementary measures.