A Study On The Validity Of Incentive Stock Option Of Listed Companies

With the deepening of reforms of our market economy system, the company has become the the main form of domestic enterprises with a basic feature of the separation of ownership and managerial authority Which has combinated the capital with managerial authority and brought the development of the economic. it also brought the separation of the right of management and residual claim which lead to the problem of commission and agency. However, because of information asymmetry,uncertainty of external environment and the non-fixity in exertion of human resource,the effect of reducing the agency cost in the way of comprehensive supervision is limited.Therefore, in addition to supervise, the positive motivation will become the important means to reduce agency.the core idea of stock options incentive system is: the company’s agent need to work hard to improve the value of the company and raise the stock price to make more personal income.All of those asking for the combination of short-term benefit and long-term development with the consideration the development of the present and future of the enterprises.In modern corporate governance, stock option system can be used to solve the problem of principal-agent,reduce the agent cost and resolve the short-termism behavior of agent by long-term incentive and examination.In 2006,the stock option incentive system has also been rapid promotion and application in many corporation of our country.However, both practical and theoretical of corporate governance, the implementation of stock option system does not so productive and the academic controversy never stop.Therefore, the effect of stock option incentive empirical studies listed companies on China is essential.This article selects the companies which implemented the stock option incentive system from 2006 to 2010 as samples, using general statistical analysis and principal component regression analysis with the combination of empirical analysis ways to explore the stock option incentive plan has a positive impact on the operating performance of listed companies.