Research On Stock Option Incentive And Capital Structure Adjustment Of Listed Company

The relationship between equity incentive and capital structure is close, and as the most important way of equity incentive- incentive stock options, its extensive use has aroused the concern of theory and practice. Since generated from principal-agent theory, the implementation of appropriate incentives for management to solve the principal-agent problem is regarded as a panacea, it can encourage manager to adjust the capital structure, in order to achieve the objective of maximizing corporate value; After another outbreak executives use cash stock option incentive events such as Erie president shares only on cash 200 million yuan, but also makes people question their positive role continued. ESO separate study or the results of recapitalization formed described as "flourishing" situation, but at the same time the two included studies are few areas of the same study. In this paper, the ESO and recapitalization two aspects, the depth of the complex relationship between the two, in order for the company’s stock option incentive practices provide some theoretical support.This paper introduces the Stock Option Incentive and research background and significance of capital structure theory, and related research results were reviewed; secondly, to define the stock option incentive and capital structure of the connotation, and with the development process of China’s stock option incentive Our analysis of the current equity incentive characteristics listed company capital structure; once again, based on the situation analysis and theoretical review proposed hypothesis of this paper, empirical test the effects of the implementation of stock option incentive for restructuring capital; Finally, the conclusions of this study and made six recommendations based on the practical level.The main conclusions are as follows: First, the implementation of incentive stock options to some extent inhibited the speed of adjustment of the capital structure, increasing the gap between the actual capital structure and target capital structure, the findings support the "entrenchment effect" hypothesis. Second, the distinction between the different nature of property rights in state-owned enterprises in the stock option incentives for recapitalization inhibition rate more significant, but the impact on the degree of deviation from the weaker non-state-owned enterprises; at different levels of debt, corporate debt when there is insufficient stock Option Incentive inhibition of recapitalization of more significant deviation is greater extent. Third, and most studies abroad is consistent, firm size, growth, profitability, asset collateral value and industry median average capital structure recapitalization will influence the behavior of enterprises, and research findings are not due to the nature and business Different levels of debt and change, a certain robustness. In conclusion, results of this study showed that the implementation of stock option incentive recapitalization role gradually, but inevitably there are still some problems in the implementation process. By improving capital market environment, standardized information disclosure, strengthen internal supervision and other means, to ensure a positive incentive stock options a positive effect on capital restructuring.