Analysis Of Factors Affecting The Degree Of Stock Options’ Incentives

This pape aims at the factors affecting the degree of stock options’incentive. Samples comefrom 123 A-share listed companies that implement stock options incentives during 2010-2012. Thoretically, managers’effort is affected by their features and corporate financial data, thereby affecting the value and incentive degree of stock options. The empirical results show that the proportion of managerial ownership and business development opportunities have a significant effect on managers’sensitivity of stock options incentives, and the proportion of managerial ownership has an "Entrenchment Effect"; company financial data, including interest paid multiples and the dividend situation, also has a significant effect on the mix of compensation between stock options and salary. In addition, industry features affecting factors for the most obvious impact of incentive stock options. If enterprises are in the industry whose supervision is strong and innovation ability is weak, so that the management effort is not decisive for the performance, the enterprises owners will even give up stock option incentive plan.