A Study On The Correlation Between Stock Option Incentives And Corporate Performance In China 's Listed Companies

The listed company has special organization mechanism, and its ownership and management rights are not unified, so it has a wide range of problems such as principal-agent, therefore how to solve the contradiction between shareholders and managers of listed companies has always been a hotspot for international scholars and the shareholders of a company. Stock option incentive system is regarded as the most effective long-term incentive, through practice of western countries,.However, there are various differences between China and western countries on economic, cultural, political and others, so there still exist many doubts about whether stock options incentive can play its positive role, for. Therefore, it is necessary for us to analyze the effects of stock option incentive to provide positive help for our listed companies.The subject of the paper is about the effectiveness of the stock option incentive in listed companies in China. Firstly, the research background and significance, research methods, research status at home and abroad are briefly stated. Then the basic theoretical knowledge of stock options incentive are introduced, and the emergence and development of the stock option incentive system are discussed and analyzed. Finally the effectiveness of China’s stock option incentive system are empirically analyzed and studied with qualitative analysis, comparative analysis and multiple linear regression analysis, so that we can put forward suggestions to further improve the listed corporation stock option incentive system and provide some help for the implementation of the listed corporation stock option incentive in our country. However, the paper does not complete the study of the entire stock option incentive plan period, the validity of the stock options incentive in the remaining period can not be determined,which are the defect and shortcomings of this paper.In the paper, the China’s listed companies’ financial data between 2012 to 2014 was empirically analyzed through the above research. The result show that there is no significant correlation between the operating performance indicators and the stock option incentive, the effectiveness of the stock option incentive is doubtful. In addition, the operating performance of listed companies in China has a positive correlation between the enterprise’s operating margins and the total assets cash recovery rate.