The Best Proportion Of The Equity Incentive And Motivation

After the reform of nontradable shares, China's capital market has a great progress. Now the stock incentive is becoming another hot issue of the capital market. It can not only improve the operation of the enterprises, but also enhance the development of Chinese macroeconomics and the capital market itself.On the basis of the economic theories such as principal-agency theory and human resource capital theory, we analyze the theory foundation and stimulation mechanism for stock incentive. Then, we introduced the basic mode, the history and the mode adopted of china's stock incentive.Furthermore, we got the best incentive proportion of managers through revising of the former incentive sensitivity model and we exam the driving properties of enterprises which execute the stock incentive through empirical study.At last, we try to give suggestions to china's stock incentive through analyzing the America's experiences and lessons.