Empirical Research on the Relationship Between the Stock Option Incentive and the Performance of Listed Companies

Abstract

This paper chooses 30 listed companies that published and implemented stock option incentive plans in 2011 as the research objects. However on account of the hysteretic nature, we select the relevant data about the corporate performance in 2013 with the application of factor analysis to calculate the comprehensive corporate performance evaluation value. After that, we introduce a series of indexes to construct a regression model to facilitate the research on the relationship between the enterprise stock option incentive and the corporate performance. The research result proves that there’s a positive correlation between the stock option incentive and the corporate performance. Finally this paper proposes a suggestion on the implementation of the stock option incentive plan.
Key words: Stock option; Listed company; Corporate performance