Management Capacity,Stock Option Repricing And Executive Resignation

Enterprise incentive mechanism and human resource system have always been hot topics in scholars' research in domestic and foreign scholars.The current competition between enterprises is more of a competition for innovation,which is ultimately the competition for key talents.The inflow control of excellent talents is the key to maintaining long-term competitive advantage.For this reason,enterprises adopt various talent incentives.Stock option incentives have the dual role of “salary incentives” and “ownership incentives”.Through the ownership incentive mechanism,the behavior of the operators can be guaranteed to be consistent with the interests of the owners.Due to the exercise characteristics of options,it is critical for shareholders and option holders whether stock options are motivating.In order to avoid the influence of external,unstable and uncontrollable factors on the option incentive plan,option repricing played a positive role.Although there are literatures starting from option incentives to discuss their influencing factors and economic consequences,there is little literature on the issue of stock option repricing.Based on the above analysis,this paper takes the listed companies with the option incentive plan in the Shanghai-Shenzhen A-share market in 2006-2017 as the research object,and implements the new option incentive plan after the termination of the original option incentive plan.The company compares to explore the internal mechanism of option repricing;on this basis,it further discusses whether option repricing is conducive to maintaining its incentive effect and avoiding the loss of talent.The research shows that:(1)the higher the management ability,the more likely the enterprise is to reprice the option;(2)the positive correlation between the management capability of the technologyintensive enterprise and the re-pricing of the option is more than that of the non-technically intensive enterprise.Significant;(3)Compared with the unreprised sample,the option repricing can significantly inhibit the occurrence of executive turnover,which is more significant in technology-intensive enterprises.This paper enriches the related research of stock options,expands the investigation of the motives of option repricing and its talent retention effect,and has certain restrictions on the regulation and improvement of stock option incentive system and the protection of investors and option holders.Revelation effect.