Study on Equity Incentive of Listed Companies in China

DOI

10.2991/icedem-18.2018.53How to use a DOI?

Keywords

Equity incentive; Corporate governance; Problem; Methods

Abstract

As an effective tool to solve the principal-agent problem, equity incentive is a long-term incentive way to stabilize the leadership team and key technical staffs. However, compared with the western countries, Chinese listed companies have different market conditions and institutional background for equity incentive. Thus there are still disputes in industry about option’s effectiveness in public companies of China. And given the special background in China, it is significant to dialectically analyze the implementation of stock option incentive. This paper starts with the basic theory of equity incentive, analyzes the existing problems of equity incentive in China, and gives the corresponding solutions. Finally, by means of literature review and field research, this paper finds that listed companies in China are faced by the following problems: hitchhiking, fewer objects of equity incentive and incomplete assessment system. Then the paper offers the following solutions: optimize equity incentive design, define the scope of equity incentive objects, improve capital markets and strictly control the selection of company management.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Menglu Liu
AU  - Liangcan Liu
PY  - 2018/12
DA  - 2018/12
TI  - Study on Equity Incentive of Listed Companies in China
BT  - Proceedings of the 2018 2nd International Conference on Economic Development and Education Management (ICEDEM 2018)
PB  - Atlantis Press
SP  - 207
EP  - 210
SN  - 2352-5398
UR  - https://doi.org/10.2991/icedem-18.2018.53
DO  - 10.2991/icedem-18.2018.53
ID  - Liu2018/12
ER  -