| Promotion is always an exploring issue in the field of management as well as a global and permanent issue. Especially to the state owned enterprises and listed companies in China,promotion is the most urgent matter to settle. A notable Chinese economist once said, "China has the cheapest entrepreneur and the costliest entrepreneur system in the world at the same time." One of the main reasons of this phenomena is that Chinese enterprises didn't settle the issue of promotion properly so that many listed companies in China can't maintain their booming time more than three years. As a result, it has become the most urgent question at present that how to speed up the construction of entrepreneur promoting system in China, for the reason that a good system could turn a bad man into a good man and vice versa. Stock option is indeed a perfect solution to entrepreneur promoting. As a long term promoting system, Stock option could unify the proprietor rights and interests and the benefit of proprietor together into " a golden cuff".At present, big companies are using indexes such as selling income,net profit,share income,capital return rate,net capital income rate etc to assess. These conventional indexes didn't consider the cost of capital but only use the format of interest expense to reflect debts financial costs and neglect the cost of stock ownership capital as well. Nevertheless, capital always has it's capital just like that there is no free pie. In addition, these indexes is likely to lead to the short term profit pursuing among higher class managers and even the flood of fake indexes. A good case in point is Enron in America. Also the case of World Com and Yingguangxia in China can be good examples.EVA is a quite good choice to solve the problems mentioned above. EVA is the real economic profit which equals net profit after tax minus allassets cost including stock ownership and debts. EVA ponders the management of profit & loss Statement and balance sheet as a whole and changes the disfigurement that financial statement has not considered capital costs wholly( including the cost of debts and stock ownership). Additionally, EVA brings forward a higher request to manager, that is to say, being responsible for the efficient use of capital and the expected income of capital so as to improve the efficiency of capital collocation, promote manager to increase the profit level and increase the efficiency of capital ues.On the basis of the reasons mentioned, this paper introduces EVA into performance assess when stock option is granted as well as makes a comparative analyze to those companies which has or has not carried out stock option by the end of 2001 among over 1000 listed companies in China.This paper contains 8 parts:Part 1: ExordiumThis part briefly introduces the purpose of this paper, the present research condition in China and overseas, also, the thought and approaches used in it.Part 2: The theoretical basis of stock optionIn this part, we use surplus right of recourse theory,agency by agreement theory and entrepreneurship theory as the theoretical basis to explain.Part 3: The concept, present condition and function of stock optionWe mainly introduce the primary concept and present development abroad. Another thing is the effect of stock option to Chinese listed companies and the conventional disfigurement stock option granted by performance assess,thus EVA is introduced.Part 4: The principle, present condition and function of EVAIn this part, we mainly introduce the principle, present condition,comparison between EVA index and conventional accounting index, the function of EVA, advantages and disadvantages of EVA, EVA's calculation. These can make a basis for further analyze of model and empirical analysis.Part 5: A stock option model based on EVAWe use a series of indexes to design a model about how to confirm the price and amount of the granted stock option, such as EVA increase rate, net assets income increase rate, net share income incr... |
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