Empirical Study On The Effect Of Stock Option Incentive On The Listed Company

China securities regulatory commission issued "The equity incentive managementmeasures (Tiral)’’in January1，2006. As our country’s equity division reform isgradually completed, the stock option (Executive Stock Option, ESO) has been rapiddevelop as an incentive mechanism. The stock became one of the hottest topic in thecapital market in2006. The pirce of those list companies that issued the stock optiondaily gain was0.58%，and was twice of the average stock price. In November2006，theE’rie co. LTDs employees gained more than300million yuan thorough the stock option,the CEO gained more than200million yuan. Those has been increased the equityincentive’s mystery, so we need to make more rational analysis.Stock option incentive as a main form of equity incentive, is the most company’sifrst choice. In this paper I’m from the source of equity incentive，for example theprincipal-agent theory and human capital theory, analysis, fn this paper I choose the2006to2010released incentive scheme as the sample of empirical analysis.The ifrst part is an introduction, mainly introduces the background and significanceof the research; The second part is theoretical overview of the stock option andenterprise value. The concept of stock option and enterprise value was given in thispaper, I analyze the principal-agent theory and human capital theory; The third part isthe analysis of the effect of the stock option incentive on the enterprise value. Thearticle take a research on the stock option from six aspects，including the correlation ofstock option incentive and enterprise value, the validity of the stock option incentive,the object, the proportion of encouragement and the exercise price and other factorsfrom six aspects to carry on the analysis，based on this, advances the paper research thebasic hypothesis of; The fourth part is the empirical research and the conclusion of thestudy.