The Application Of Shareholding Motivation Of China Commercial Banks

As one of the efficient mechanisms to motivate the administrator, shareholding motivation was adopted by more and more companies in China. During the reformation of Chinese commercial banks, they are trying best to look for the most suitable mechanism of shareholding motivation for banking industry and putting it in use. The paper mainly discusses the applications of shareholding motivation of Chinese commercial banks and suggests several important factors should be paid special attention to based on the related theories.There are six chapters in this paper. The first chapter is introduction which mainly introduces the background of this paper, the related research results of academics at home and abroad, the structure of the paper, the innovation and disadvantages of the paper.The second chapter is about the related theories including corporate governance theory, agency cost theory, human capital theory, shareholding motivation theory, performance evaluation theory. The paper makes a deep analysis of shareholding motivation from all different aspects.The third chapter is consist of stock options, right of stock value added, phantom stock, restricted stock ownership and employee stock ownership which are created during the development of shareholding motivation theory. This paper conducts a qualitative analysis in stock options through several mathematics formulae resulted that the administrator will take long-term actions benefited the future development of company with shareholding motivation mechanism.The fourth chapter briefly makes a research of external environment of shareholding motivation including the weak effect of capital market, no perfect competition of manager market and the laws. Without mature external environment, the shareholding motivation would not be applied smoothly.The fifth chapter is the core chapter .Due to the limitation of research objects' quantity; this paper analyzes the characteristics and differences of different type's commercial banks. The shareholding motivation in state-owned commercial banks should develop much faster, joint-stock commercial banks are carrying out shareholding motivation actively as well as city commercial banks make the best use of shareholding motivation right now because of its flexible nature.At last, the sixth chapter are several suggestions during the application of shareholding motivation in commercial banks which are the functions of independent director and member of the board of supervisors in governance structure, indexed exercise price, scientific system of performance evaluation and vitrification of information exposure.