A Study On The Incentive Stock Option System Of Listed Company And Its Accountant Treatment

With the deepening contradiction between the shareholders and managers, the stock option system was produced in the1950s in United states. It not only alleviate this contradiction, but also unify the interests of managers and shareholders. As the "golden handcuffs" of managers, stock option incentive system created the myth of Silicon Valley and Microsoft to a certain extent. So as a model of incentive system, stock option incentive swept the world.Stock option system started late in China. In2006, the China securities regulatory commission promulgated "the equity of listed companies incentive management approach(trial)" with provided the legal basis of stock option incentive system, since then, this system was widely implemented in China’s listed companies. However, on one hand, because the stock option incentive system is too new to China, so some elements are not perfect and some related systems are not complete. On the other hand, because of the limitation of the current economic, legal, political and other aspects, This system is also limited. So, if we want to fully implement this incentive system, we need to lay a more favorable market environment.This article is mainly divided into five parts. The first part is introduction, including research background, significance and the literature review. The second part selected75listed companies which announced draft stock option incentive plan since2006as a sample. Through the statistical and analysis the related factors among these drafts, we can find the commonalities and characteristics of these drafts. Also, we can identify the shortcomings of the draft plan, which can provide reference for future draft. In the third part, we select stock option incentive plan which was public in2010as a sample, at the same time, we identify five comparable companies for each sample, though statistic and analysis its per-share earnings and the weighted average rate of return on equity, we can conclude that the stock option system is good for short-term corporate performance.the fourth part is mainly introduce the accounting recognition, measurement and processing methods, which can provide the refence to listed companies. The fifth part describes the main conclusions of this paper, at the same time, it introduce the deficiencies of this article.