The Analysis Of Internet Listed Companies' Equity Incentive Effectiveness

As a long-term stimulation mechanism,stock ownership incentive system was established in the United States in 1980s.This mechanism was designed to facilitate the diligence and the initiative of the administration and improve the market value of the enterprise,etc.Thus,many theories have inspired by this mechanism and have become the foundation of equity incentive structure,for example,the principal-agent theory,the human capital theory,and the property rights incentive theory.Ever since the reformation of the shareholder structure,The general recognition of stock option has been growing among researchers,enterprises,and the government;furthermore,many Chinese companies have been successively duplicating the stock ownership incentive system from foreign countries.However,because of the fact that China has a late-started,immature economic market,complicated questions arose.As a great electric commercial enterprise and a listed company,Suning inaugurated stock option in its earlier establishment,which had made it become the representative.This article will research on the relationship between the conduction of the stock ownership incentive system and the performance of Sunning through its five stock option plans on 2007,2008,2010,2014,and 2015.Furthermore,this article will examine the crucial elements of stock option through contrast and compare the project design of Sunning's stimulation mechanism.Hence,this article could explore the practicable and the impracticable factors of the stock ownership incentive mechanism,and provide a reliable further reference for other companies to set up a more reasonable and scientific equity incentive system.