Proceedings of the 2018 2nd International Conference on Economic Development and Education Management (ICEDEM 2018)

Study on Equity Incentive of Listed Companies in China

Authors
Menglu Liu, Liangcan Liu
Corresponding Author
Menglu Liu
Available Online December 2018.
DOI
https://doi.org/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.
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Proceedings
2018 2nd International Conference on Economic Development and Education Management (ICEDEM 2018)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
December 2018
ISBN
978-94-6252-642-6
ISSN
2352-5398
DOI
https://doi.org/10.2991/icedem-18.2018.53How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

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  - 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  - https://doi.org/10.2991/icedem-18.2018.53
ID  - Liu2018/12
ER  -