The Study On The Effects Of Incentive Stock Options Of Listed Companies

Since2005, China Securities Commission issued "listing Corporation equity incentive management measures (Trial)", listing Corporation stock options has a more explicit specification and the option issue and Implementation of Chinese listing Corporation are on the right track. Stock option incentive which develops so fast has gradually become the main form of listing Corporation management incentive. Although the stock option in Europe and the United States receive lots of praise, for the less-developed capital market in China, their specific effects and incentive effect are still under discussion..At present, Chinese experts’studies follow the international situation, and their studies about executive stock option (ESO) mainly focus on stock options pricing, incentive factors, accounting and other factors. However, the empirical studies whether the management optional stock has a positive effect are still rare, due to the particularity of data and processing, most of the study is limited to one year, so the results is not very convincing. Therefore, this paper has useful theoretical value and practical significance.In this paper, firstly, the stock option incentive effect of the related literatures were summarized and then discusses the development of stock option in the China and foreign country, current situation in China since2006and its positive and negative effects. Next, this paper uses data of A stock which listed in Shanghai and Shenzhen Stock Exchange and issued ESO from2006to2009for empirical research and the listing Corporation executive stock option incentive effect. will be examined from three aspects Net assets per share, accumulation rate of capital and integrated leverage are chosen to represent company performance, growth and risk. Because managers are expected to run company as long-term vision, the implementation effect will take some time to appear, therefore, the model data is implemented next year index options. In addition, my paper also increases the control variables, such as the ratio of liabilities to assets, ownership concentration, ownership control, managerial ownership, management compensation, so that the model fit better and patulous research. Finally select the implementation of executive stock option after two years of data were robust test, make the research results more reliable.This paper includes the following five parts:Part1:introduction. In this part, this paper mainly introduces the background and significance of management stock options study, and discusses the theory value and practical meaning; Describe the research content and method and have a complete introduction of paper’s frame; Define the related concept, make expression of paper more accurate, avoid the confusion of related concepts; Finally, summarize the research’s superiority and insufficiency.Part2:the literature review. In this part general theory of stock option are summarized, and then classify in four aspects to give more details.Part3:the study on ESO’s theoretical foundation and development. This part introduces the ESO’s theoretical fundamental in detail and development at home and abroad.Part4:the ESO implementation and effect analysis. This part firstly summarizes the salary of managers in China’s listed corporation, and then shows descriptive statistics by data from2006to2012, finally described the positive and negative effects of executive stock optionPart5:the empirical study on stock option incentive effect of listed companies. This section validates incentive effect of ESO through complete empirical studies from three aspects and tests the robustness of the results.Part6:conclusion. In this part, summarizes the research conclusion in part four, and put forward the corresponding policy recommendations according to the current situation in our country.This article is based on previous studies. My model complements control variables, extends data scope. increases the fixed number of year and uses four years’ data before and after ESO. That makes my research follow time sequence, and strengthen the credibility of the conclusion. This paper fulfills the relevant study and gives more experience to further research.