Empirical Research On The Impact Of Stock Option Incentive Plan On Stock Price,R&D Investment And Risk Taking

The stock option incentive system provides incentives to employees by granting the call option to them.In theory,the incentive process well the interests of managers and shareholders',to a certain extent reduce the agent cost,and at the same time,realizing the maximization of shareholders' interests.However,in the process of practice,there are many influencing factors would make incentive system of stock options can not achieve the ideal effect theoretically.This paper took stock options incentive plans which published in 2015-2016 as sample,to do the empirical research on the impact on the stock price,company innovation investment and risk bearing.Considering the actual circumstances of our country,the implementation of stock option incentive plan effect,in order to get a more comprehensive understanding and thinking,thus the implementation of stock option incentive plan for the future and have data to support reference for the improvement.In the first part of the empirical analysis,this paper uses the event study method,through to the company reported a stock option incentive plan window period of the cumulative abnormal returns,found in the gem listed company announced after the stock option incentive plan,to be able to receive positive feedback from the market.Companies listed on the main board,on the other hand,have a negative cumulative rate of return.Most of the existing literature focuses on observing the abnormal fluctuations of stock price before and after the announcement of stock option incentive plan to study the manipulation of stock price by incentive personnel;Or observe the impact of large commercial activities such as m&a and investment on the company's stock price through the event research method.In this part,we combine these two ideas,and observe the attitude of the market to announce the stock option incentive plan by calculating the cumulative abnormal return rate in the window period.The second part of the empirical analysis focuses on the impact of stock option incentive plan on enterprise innovation input.Existing research mostly adopts the static Angle of view analysis enterprise changes before and after the implementation of stock option incentive system innovation investment,and this part is to use tend to Score Matching method(Propensity Score Matching,PSM),from the Angle of the dynamic analysis of stock option incentive plan's impact on enterprise innovation investment.This research method can overcome the problem of sample selection bias and make the conclusion more convincing.Finally we got the research result shows that after the implementation of stock option incentive plan,company spending on r&d than similar,not the implementation of stock option incentive plan company invested about $910000,higher than that of illustrate the implementation of stock option incentive plan is to improve enterprise in the innovative research and development investment.The study conclusion shows that the implementation of stock option incentive plan is helpful to promote the company's long-term development,provide the support for the rationality of the stock option incentive plan evidence,but also for companies hoping to improve the company's r&d policy makers have a certain reference value.The third problem in this paper is the correlation between the implementation of stock option incentive plan and the company risk bearing level.Most studies have taken samples as a whole to investigate,which ignores the differences between incentive plans with different difficulty in the right conditions,leading to the inaccuracy of the research results.In that part of the study,we through the analysis of stock option incentive plan conditions,samples can be divided into incentive and welfare to two groups,respectively to investigate their effects on managers risk-taking behavior.The results show that there is a significant positive correlation between the stock option incentive plan and the company risk level.For the samples of welfare,stock option incentive plan got a negative correlation relationship with risk bearing level,but not through the significance level inspection,therefore,there is no significant correlation between them.Therefore,we can draw the conclusion that the incentive contract of stock option,which is more strict in exercising the right condition,has a positive encouraging effect on improving the risk bearing level of the company.The original intention of the stock option incentive plan is to unify the interests of management and the owners,rather than to provide benefits for managers.Therefore,when the company publicizes the stock option incentive plan,it should be reasonable to consider the right conditions,and it should not be set as simple.Only when the risk return substantial enough,and exercise conditions the performance standards for management personnel with certain challenges,managers have the power to increase the risk tolerance of the company,so that the stock option incentive plan truly do positive incentive for management.