Research On Timing Behavior In Equity Incentives

Since 2006,"listed companies" equity incentive management approach implemented in our country,the market parties to the equity incentive plan as a perfect incentive system,enhance the value of the company’s initiatives,this is because with the establishment and perfection of modern enterprise system,the separation of two rights,resulting in corporate governance "principal-agent problem even more how to improve the business performance outstanding,while reducing the agency cost problems to be solved,and the equity incentive plan as a time span long incentive measures,through the grant management part of the shares,effectively solve the problem of conflict of interest between shareholders and managers.July 13,2016,the Commission issued a listed company equity incentive management approach,the new incentive is to further improve and improve the pilot version of the year 2006.However,with the gradual improvement of the market and the equity incentive plan implementation of equity incentive plan in depth,malpractice has become more and more apparent,this is the most important problem is the company management incentive to choose opportunism exist in the process of implementation in the equity act.This paper takes TCL group incentive stock option as an example,from the stock option incentive plan draft announcement at opportunistic choice and around three aspects of stock option incentive plan of information disclosure and earnings management of opportunistic timing draft before and after the announcement of the incentive plan before and after the introduction of the opportunistic timing behavior of listed company stock option.The study found that the management in order to reduce the exercise price of stock options to maximize the expected return,will consciously choose the company’s share price than the low announcement of draft equity incentive plan,and tend to disclose bad news,in the draft before the announcement to postpone the good news,at the same time the implementation of downward earnings management,with opportunistic timing behavior.This paper studies to understand the opportunistic timing of equity incentive induced,information disclosure and earnings management of immoral behavior to be a combination of evidence and systematic thinking,not only from the perspective of equity incentive contract elements set rich agency documents,can also provide policy suggestions for perfecting the equity incentive exercise price factor design.