China's Listed Companies The Incentive Effects Of Stock Options,

Foreign studies show that the stock market circumstance,related laws and regulations and corporate ownership structure have great impact on the effectiveness of executives' stock option to the listed companies. The executive equity incentive had been introduced to China long before the share structure reformation in 2005, but its effectiveness is not clear. After the share structure reformation and the promulgation and inaction of "Provisional measures on the equity incentives in the listed Company","Provisional measures on the equity incentives in the listed State-Own Enterprise" in 2006, the outside obstacles in the implement of executive stock option had been eliminated. In order to study the effectiveness of executive's stock option to the listed companies of china since 2006, the dissertation at first construes the executive stock option model to study the this effectiveness in the theoretical aspect. At the same time, by selecting 34 listed companies which implemented executive stock option in 2006 as the sample, the dissertation studies their historical data empirically. The empirical result shows that:(1) Executive stock option's effectiveness to the samples' operational achievements is positive and obvious.(2) Executive stock option's effectiveness to the samples' potential growth ability is positive but not obvious.(3)Executive stock option's effectiveness to the samples' total risk is not clear.To make up for shortcoming of the above empirical study, the dissertation compares the sample companies' operational achievements,growth ability and total risk with their comparatives in the same industry separately. The result shows that the sample companies' operational achievements improved obviously compare to their comparatives, but their growth ability and total risk didn't have any relative improvement. So the dissertation come to the conclusion that executive stock option have positive effect only on improving list companies' operational achievements, it has no much effect on upgrade their growth ability and reduce their total risk. At last, the dissertation analyzes the relationship between sample companies' executive stock option plans and their performance in operational achievements,growth ability and total risk. Then we put forward several suggestions. At first listed companies should set their executive stock option plan according to their own situation; Secondly, we should further improve the stock market's pricing mechanism and the listed company's ownership structure; Thirdly, we should cultivate a competitive managerial labor market. Finally, the news reporting regulation and accounting norm should be further improved.