The Motivation Research Of Listed Companies' Choice Of Restricted Stock

Since the promulgation of equity incentive measures for the administration in the year of 2006. Equity incentive is widely used in all kinds of company practice gradually. And the choice of the ways of equity incentive is the focus of the company which needs to be considered in the design of incentive contracts. It is very important to choose the right means of incentive according to their own characteristics and the purpose. But with the rapid development of equity incentive in our country in recent years, the characteristics of the equity incentive show up new condition, the restricted stock incentive as one important incentive model in recent years was used by more and more companies. Since the year of 2012, it became the most popular incentive mode among the listed companies and surpass the traditional popular stock options. What is the reason? This article comprehensively analyses the difference between two kinds of incentive mode from two aspects of contract arrangement and the company characteristics in order to explore the hidden mysteries in the restricted stock option motivation.The article chose 724 sample listed companies, select nine variables which represent the company features and characteristics of the contract, from the result of the logistic regression. When the incentive object was more inclined to executive, the companies tend to choose restricted stock rather than stock options which was assumed by this article, and restricted stock has shorter expiry date. In terms of the company characteristics, the company with joining together of two position, high growth, high asset-liability ratio was tend to choose stock option, the selection is conformed to the company features and consistent to the original hypothesis. In order to investigate restricted stock option motivation of listed companies under different property. The enterprise was divided into two groups by state-owned enterprises and non-state-owned enterprises, and then make it regressed. We find that the high-tech enterprise of non-state-owned enterprises prefer to choose stock option. The restricted stock incentive of State-owned enterprises did not have shorter expiry date and not be inclined to executives. Then continue to observe restricted stock option motivation of listed companies under the different ownership concentration. The company was divided into two groups, according to the ownership concentration then make it regressed, the executives of high ownership concentration of enterprises was not tend to choose restricted stock, which is in contrast to the low concentration of enterprises.The results show that, when choosing restricted stock incentive, the listed companies can consider the characteristics of the company itself and make a suitable decision.But the company can't do that when it designed the contract. Considering the restricted stock itself has a higher potential return level of earnings,higher security and shorter expiry date,the practice of listed companies can be considered to send the welfare to executives. Based on the above research results, this paper suggested that the relevant management agencies should be appropriately increase restricted stock price. The listed companies should use more restricted stock to incentive middle managers, and extend a lock-up period. The company should adopt the stock options with stronger incentive effect to incentive senior managers.