Comparative Study Of Stock Option Incentive Mechanism And Restricted Stock Incentive Mechanism

Stock option incentive and restricted stock incentive are the two main ways in China. As a long-term incentive mechanism,Equity incentive is helpful to alleviate the agency problem between shareholders and managers. Ho wever,How to make the equity incentive effective,How to choose the equity incentive modles will be the most realistic problems in China.At first,This article illustrates the related theoretical basis of equity incentive,describes the equity incentive status and problems of listed company in China,and then reference to the long-term stock contracts,given a formula for calculating the cost of restricted stock incentive,using B-S model measure the cost of stock option incentive,make a conclusion that restricted stock incentive mechanisms required higher cost through numerical tests.At the same time,comparing to the market risk,dilution risk, moral hazard risk between the two,It gives a conclusion that stock option incentive mechanisms would be take more risks.Moreover,comparative analysis of their incentive effects.On the basis of introducing explanatory variables (including virtual variables),then use the SPSS software to do demonstrating analysis through the multiple elements linear regression, The data come from Chinese listed company launching the A mode stock.It includes the annuals of43example listed company in2008.By the demonstrating analysis,we can draw a conclusion that there is the weak relativity between equity incentive and outstanding achievement of listed company,The stock option incentive is a little more than the other,Finally, I make an analysis, contrast and explanation in details to give a suggestion and solution about how to make a sustaining progress of equity incentive in different listed company of china.