Study On The Relationship Between Entrepreneurship And Stock Option

Professional manager Tangjun, who is known as " the King of wage earners", owes his success to "The performance of that the Chinese professional manager system is improving constantly ". Of course, there is no doubt that his success can’t be separated from his entrepreneurship to create value for the enterprise and shareholders. Incentive mechanism of Stock option is one of the most effective forms to motivate the Professional managers. The incentive mechanism of stock option effectively resolves the confusion as a result of the different interests between owners and managers. Along with the relevant laws and regulations of it and the introduction of follow-up system, continuous improvement and development of capital market, more and more listed Corporations implement the incentive mechanism of stock option in china.This paper aims to find out the correlation between the entrepreneurship and the incentive mechanism of stock option. On the one hand, explore the influencing factors of the incentive mechanism of stock option and explain how it correctly reflect the enterprise’s performance; On the other hand, explore how to establish the effective incentive mechanism of stock option to stimulate the entrepreneurship, and to enable the entrepreneurship to match the level of the incentive mechanism of stock option. Finally, According to the results of the research, analyze the current situation of China’s capital market and how it impacts the incentive mechanism of stock option, so as to improve the scientific and feasibility of the incentive mechanism of stock option. The first chapter includes the research background and significance, research status at home and abroad, the research content and the method and the innovation points and shortcomings. The second chapter is about the theoretical analysis. Firstly, the theoretical basis of this study is presented: principal-agent theory, human capital theory and incentive theory. Secondly, describe the related concepts of entrepreneurship and stock option. Select “ROE-Industry average” to measure entrepreneurship, select the exercise price of stock options, quantitative indicators of incentive stock options, validity period as the main factors influencing the effect of incentive mechanism of Stock option; Finally, Analyze the relationship between the two and try to build the model. The third chapter is the empirical study, the selected samples(102) are all the listed companies on the Chinese market, which have taken and are implementing the incentive mechanism of stock options during the period of 2006 to 2013. Taking correlation analysis, linear regression analysis and contrast analysis to establish the model by SPSS17 and EXCEL2007. The chapter also analyzes the empirical results. The empirical results show that there is a positive change in the correlation between the number of stock option to the managers and the entrepreneurship; There is a positive change in the correlation between it and the exercise price, but the correlation is not obvious; There is a positive correlation between it and the incentive time, but the correlation is not obvious, and the empirical results contrary to expectations.The fourth chapter is to put forward opinions and suggestions on the implementation of the incentive mechanism of stock option in china. The empirical results show that effect of stock option on entrepreneurship can vary by industry. There is positive correlation between Incentive mechanism of stock option and entrepreneurship, but it’s not obvious. The reasons for difference of Empirical results and theoretical analysis are: One is that our capital market is not perfect, not up to the conditions for effective implementation of incentive mechanism of stock option, the other is the managers ’ moral hazard problems. Put forward three suggestions: first, improve the capital market environment and improve the efficiency of capital market; the second is the establishment of effective market; the third is building reasonable incentive mechanism of Stock option. The research of this paper aims to make a contribution to improve the market of our country’s professional managers and incentive mechanism of Stock option.