According to the principal-agent theory and risk-taking theory,the implementation of stock option incentives can link the individual benefits of managers with the benefits of the company,alleviate the agency problems and promote the venture capital activities.In order to research whether stock option incentives can achieve the effects that theory predicted,play the role of corporate governance,promote venture capital activities,it is significant to study the influence of executive stock option incentives on the M&As.Based on principle-agent theory as the core theoretical basis,this study focuses on the impact of executive option incentive on M&As.This study uses the data of all A-share listed companies from 2007 to 2021.This study measures the executive stock option incentive from two dimensions: one is whether the executive stock option incentive is granted,and the other is the scale of the option incentive.M&A is also measured from two dimensions,one is whether M&A has been carried out and the other is the scale of M&A.This study expects to test the impact of executive stock option incentives on M&As,and explore its influencing mechanism.In addition,this study also tests the effect of corporate governance on the relationship between option incentives and M&A,and tests whether the impact varies with the relative compensation level and the nature of corporate ownership.The conclusions of this study can be summarized as follows:(1)Both granting executive stock option incentives and increasing the scale of stock option incentives can increase the possibility and scale of M&As.(2)Risk-taking is one of the intermediate mechanisms through which executive stock option incentives affect M&As.(3)In enterprises with higher governance level,the impact is more obvious.(4)In non-state-owned enterprises and enterprises with lower relative manager compensation,the impact is more obvious.This study complements the compensation incentive theory and the theoretical research related to corporate M&As.This study is also conducive to improving the incentive system and relevant laws and regulations,providing reference for the incentive and governance role of option incentive,and is also of great significance for enterprises to adjust industrial structure and integrate resources. |