Research On Impact Of Location On Employee Stock Option Plans

Employee stock option plans refers to the long-term incentive for the company to use the stock of the company as the subject,and to perform the long-term incentives for the employees other than the directors,supervisors,and senior management personnel.In order to implement relevant requirements for optimizing investor returns and combine practice development with market demand,the China Securities Regulatory Commission issued a new Administrative Measures on Equity Incentives for Listed Companies on July 15,2016.The new management measures have strengthened information supervision.Improving the implementation conditions of equity incentives,clearly defining the scope of incentive targets,increasing company autonomy and flexible decision-making space,strengthening internal supervision and market constraints,improving related procedures,and strengthening post-supervision mechanisms.The regulations on supervision and punishment were regulated.With the strengthening of China's implementation of equity incentives,the environment and conditions surrounding equity incentives have become more mature.In recent years,equity incentives have become a hot topic in the domestic theoretical and practical circles.Practice has proved that the employee stock ownership incentive plan is an effective incentive.However,there are few related studies on the equity incentives of domestic employees,and there are doubts and doubts about the equity incentives of employees in all sectors of society.This article begins with the purpose of initial understanding of employee stock incentives and analyzes the general situation of employee stock incentives,including a detailed description of the institutional background,characteristics,implementation incentives,and development status of employee stock incentives,and then focusing on the issues affecting employee stock incentives.Geographic location factors,empirical analysis of the geographical factors that affect the intensity of employee equity incentives.In the empirical analysis part,this paper based on the theories of attracting and retaining staff theory and social interaction theory,combined with the existing literature,proposed that the geographical position affects the employee equity incentives through the labor market and social interaction effects in short supply,using the Tobit regression analysis method.Conduct an empirical analysis to explore the influence of the company's geographical location on employee stock incentives.The empirical study of this article selects A-share listed companies in Shanghai and Shenzhen from January 1st,2006 to December 31 st,2016 as research samples,and studies the motives for employee equity incentives from a new perspective of geographic location.Combining the in-depth analysis of the theories of attracting and retaining employees' theories and social interaction effects,we make assumptions and empirical analysis of the geographical factors that affect the implementation of employee equity incentives,and explain the influence of geographic location on employee stock incentives from the perspective of labor market characteristics and social interaction effects.Our research results show that the geographical location of the company affects the equity incentives of the company's employees.This conclusion holds after the control of a series of company financial characteristics.This geographical effect is formed by two major factors: first,the characteristics of the local labor market;second,the social interaction effects of other local companies.First of all,under the condition that the labor market is in short supply,the stronger the employee equity incentive plan is.In addition,when other companies around the location of the listed company offer more options,this social interaction effect will increase,and the company will implement more equity incentives for employees.Based on the basic analysis and empirical results,the key to the influence of the company's geographical position on the employee's stock incentives is summarized,and some suggestions are made.