The Empirical Analysis Of Relationship Between Stock Option And Enterprise Value Within Chinese Listed Company

As the development of the world economy, enterprises face to more keen competition. The operation and development of enterprises in the complex economic environment is the eternal subject which the modern enterprises should to consider. Enterprises not only consider their cost and profit, but also pay attention to the stimulation of the higher managers. If the higher managers and the staff do not work hard, enterprises could not have development. Stock option is an important part of the human resource management in enterprises. The theoretical basis of stock option is the agent relation and cost problem which is between stock owners and managers. In some foreign science and technology enterprises, stock option is a common stimulation method.The order of enterprises is profit maximization, and it is a relatively short behavior. From the long term aspect, enterprises need the continuous development, the great development potential and considerable investment yield. Enterprise value maximization should be the long term struggle objective. However, the higher managers usually only pay attention to short income, therefore, stock option could communicate these two factors together and it could relieve the conflict the stock owners and higher managers.This paper is the research about the empirical analysis between stock option and enterprise value within Chinese listed company. The objective of the paper is to discuss the mode and experience of the stock option development at both home and abroad and primary analyze the relationship between stock option and enterprise value by the data which have been published by the listed companies. The paper expatiate the relative theory of stock option and enterprise value and the practice circs of stock option at home and abroad. It is on the basic of the theories of Chang and Mayers(1992), Morck, Schleifer and Vishny(1988) and use the data which have been published in Chinese listed companies from 2002 to 2006 to analyze the relationship between stock option and enterprise value and get corresponding statistic description result. The paper uses the research method which consolidates between theory and practice, and combines between criterion and demonstration. And it researches related data and uses SPSS to regress the collected data. The paper expatiate the stock option theory and uses the experience of other countries for reference, and it researches the relationship between stock option and enterprise value to get relative conclusion and table a proposal.Through the systemic research and analysis, the paper could educe the following conclusion: firstly, the enterprise value of listed companies is influenced by the payoff ability of the companies, the stability of the payoff and the growth of the companies. And the enterprise value of listed companies is positively related to the higher managers' stock holding ratio. And secondly, the listed company should improve the enterprise value and change existing higher mangers' stock holding structure by all kinds of feasible inspirited methods. It should improve the higher managers' stock holding ratio and keep proper debt to asset ratio in the same time.According to the research of Chinese listed companies, the advices are as follows: firstly, it should adjust the stocks holding ratio of the higher managers, enhance the inspiriting degree and regulate the capital structure. Secondly, it should more consummate the enterprises operation structure and lastly, it should enhance enterprises management and control the investment risks.