| Nowadays the economy waves have rolled up everywhere in the world. Meanwhile each country is sparing no effects to develop their economy and raising the efficiency in production for strengthening the worldwide competition.For a long-term, the empowerment of the business executives has been an important subject for theenterprise's owners and the stockholders. Under the detachment system of the ownership and operatingpower, the relationship between the owners of enterprises and the enterprises' executives is the agentrelation. In the process of agent, the 'reverse choice' and 'moral risk' resulted from the information asymmetry and the incompatibility in the object functions for the both bodies of the agent may be brought on with the result of the enterprise's value decrease. It is vital to resolve the issue. So the effective,long-term empowerment mechanism (executive stock options) has been adopted successively in thewestern countries and Chinese.The dissertation sums up the details of the ESO executions both in Chinese and foreign countries,conducts a deep and delicate analysis and brings up the necessity and possibility for the execution of theESO. Based on the former fruits, I have studied the elements of ESO, such as the beneficiary of ESO, the amount of ESO, the executive price of ESO and the schedule of ESO etc. Meanwhile the Black-Scholesmodel is amended for adapting to the practice, which rationalizes the decision in making price and the stockamount of ESO. Finally the empirical analysis is carried out for checking the effect of ESO, then theconclusion is reached.On the basis of adequate investigation and research, the dissertation becomes a creative thesiscombining the contemporary circumstances, which has a few rational improvements. The author expects that the dissertation could sever the enterprise efficiently in the long-term executives empowerment with agood effect. |
