The Empirical Research On The Effect Upon The Stock Option Incentive Of A Shares Listed Companies To The Company Performance In China

Since 2006, many listed companies have stock option incentive plan in China’s A-Share Market. A lot of stock option incentive plans are in the preparation phase. With Gradual liberalization of the stock options market, the number of stock option incentive plan will increase. But with the number of stock option incentive plan increasing, a lot of people start to pay attention to. So the paper uses multiple regression and independence test to study the effect upon the stock option incentive to the company performance.Firstly, the paper expounds the theories of stock option incentive. After reviewing the relevant literature, the paper identifies the research direction. The paper finds that the number of stock option incentive plans has been rising from 2006 to 2013. These companies are in different industries and sections. Private enterprises accounted for the majority. Incentive proportions and validity are not high as a whole.Secondly, the paper builds the model of the effect upon the stock option incentive to the company performance, and chooses the companies in China’s A-Share Market from 2006 to 2012 as sample companies. By using the SPSS20.0, the paper analyzes the effect upon the incentive design elements to the company performance. The incentive design elements include incentive proportions, validity and condition of executive. The paper also has significant test of difference of stock option incentive between manufacturing and non-manufacturing listed companies.Thirdly, the paper chooses two companies to study, deeply analyze the effect upon the stock option incentive to the company performance for each of the companies, comparative analyze the two companies.Lastly, the paper summarizes the research results. The research results can be a reference to listed companies for design the stock option incentive plan, so that to promote companies performance.