Analysis On The Implementation Effect Of Stock Option Incentives In Listed Companies

In the process of enterprise development,due to the principal-agent conflict between managers and owners,managers may have short-term behaviors,which will harm the long-term development of the company.In order to make managers pay more attention to the long-term and healthy development of the company,companies will resolve this contradiction in many ways,one way is to reduce managers' sense of unbalance through long-term incentives.There are many ways of long-term incentives,equity incentive is one of them.For a long time,equity incentives have been heavily used in many western developed countries and have achieved good incentive effects.Equity incentives are considered to be able to solve equity incentives effectively.Based on this foundation,with the continuous development of the market economy in these developed countries,as one of the equity incentives,stock options have begun to emerge,and are constantly growing and expanding,companies believe that stock option incentives are relative to the problem of corporate principal-agent.However,with the development,people's controversy over the incentive of stock options has continued to arise,especially after the corrupt scandals of some big companies emerged,people began to reflect on what they thought was precisely because stock options gave executives financial support in order to seek higher profits.Despite this situation,the stock options incentive mechanism is still considered by many companies as an important incentive mechanism adopted by many companies.Compared to Western developed countries,equity incentives started late in Chinese companies,and equity incentives began to appear in Chinese enterprises in the 1990 s.In 2006,they gradually began to enter the standardization process.The stock option incentives began to be implemented in large numbers in listed companies after 2009.However,according to the data,from a whole point of view,although the number of listed companies that implement the stock option incentive plan in China is continuously increasing,only a small part of these companies actually complete the incentive plan.Based on this background,this article takes Qingdao Haier Company as the research object,taking the stock option incentive case as an example,it analyzes the effect of stock option incentive of listed companies.This article mainly uses the literature research and the case analysis method to combine the case companies,and analyzes the four stock option incentive plans and completions announced by Qingdao Haier Company from 2009 to 2014.This paper is divided into six chapters.The first chapter is the introduction.This part mainly explores the background and significance of this paper's research.In addition,it reviews the related development history of stock options incentives for listed companies by looking up the relevant literature.The second chapter is the theoretical overview of the thesis.As the theoretical basis of the thesis,the second chapter constructs the theoretical basis on which the full text is based.First of all,it defines the relevant concepts of stock option incentive,introduces the basic content of the stock options incentive,and introduces the Evaluate the financial effects and non-financial effects of stock option incentive performance.The third chapter analyzes the current situation of Qingdao Haier Company's implementation of stock option incentive plan for the case study object of this article,firstly introduces the case company briefly,including the company's development history and the ownership structure.Then,from several perspectives,the author analyzes the reasons for the implementation of stock option incentives in case companies,and finally introduces the contents and results of the four-stage stock option incentives implemented by Qingdao Haier.The fourth chapter is the effect analysis of the implementation of stock option incentive plan of Qingdao Haier Company.As the core part of the paper,this chapter mainly analyzes the effect of the implementation of stock option incentive of the case company.This part mainly analyzes the performance of Qingdao Haier's implementation of stock option incentive effect through financial indicators and non-financial indicators.The fifth chapter is the conclusion and enlightenment,mainly through the study of the implementation effect of Qingdao Haier stock option incentive plan,and draws conclusions and enlightenment.Chapter 6 is a concluding remark.Through the research,this article draws the following conclusion: Qingdao Haier equity incentive plan has a certain effect on the company's operating performance under certain circumstances.Among them,the company's profitability and profitability have been significantly improved,and the core competitiveness of the company has been improved.,have a good stock market reaction.It also draws inspiration and hopes that it will be able to provide reference and reference for more companies that implement stock option incentive plans on the basis of enriching the case study of stock option incentives for listed companies in China.