Research On The Effect Of The Stock Option Plans Of The Listed Companies On Corporate Investment Behaviors

The stock option plans of the listed companies and corporate investment behaviors have become a hot research focus of both domestic and foreign scholars. As one of the tools to resolve the agent conflicts between shareholders and managers, the stock option help lead to the agreement between the interests of them as much as possible. As the main reason of growth, the investment behaviors directly relate to the company's future value, which in turn directly affect the manager's incentive earnings. Because of the stock option in China starts late, the studies of stock option and investment behaviors are not much in our country. In this dissertation, on the basis of a comprehensive and systematic research of related literature and related theory, the effect of the stock option plans of the listed companies on corporate investment behaviors is studied; the main contributions are as follows:Firstly, the related theory of overinvestment and underinvestment of listed companies are summarized. Use of the principal component analysis (PCA) to deal with the sample data of listed companies, and then figure out the best investment level of listed company samples. Using of the investment expectation model, the paper analyzes the condition of overinvestment and underinvestment of listed companies. The empirical research shows that listed companies are widespread overinvestment and underinvestment.Secondly, the paper establishes a model which is based on the latest theory to measure descriptive statistics of overinvestment and underinvestment of China's listed companies. The result shows that equity incentive is helpful to inhibit the overinvestment and underinvestment of listed companies. Further on overinvestment and underinvestment in regression analysis, find out the possible cause of regression results in individual years, the results show that equity incentive is helpful to inhibit inefficient investment behavior of the company?Summary to the conclusion that listed companies widely exists overinvestment and underinvestment, the equity incentive helps curb excessive investment, also helps to alleviate the underinvestment, finally, some future research directions are put forward.