Research on the Present Application of Share-based Payment in China Listed Companies
|School||Jiangsu University of Science and Technology|
|Keywords||share-based payment incentive human capital stock option restricted stock|
Share-based payment is one of the effective means to solve the principal-agent problem.Share-based payment is one of the long-term incentive systems based on the realization ofhedge and value-added of human capital’s value as well as company’s value. Share-basedpayment is feasible in theory, but whether it is effective in practical application is still aquestion. This paper trys to find answers through systematic analysis and research on thepresent application of share-based payment in China listed companies.Based on the analysis and comments on the domestic and foreign research status ofshare-based payment, this paper systematically researched the application status ofshare-based payment in China listed companies from the environment, characteristic andeffect. Firstly, this paper researched the principal-agent theory, human capital theory andincentive theory. Through share-based payment to make employees participate in sharing ofthe created value in the listed company is not only the effectively way to solve theprincipal-agent problem, but also recognize the value creation status of human capital,hedge and add the human capital’s value as well as the company’s value. Secondly, thispaper researched the application environment of share-based payment form policy, capitalmarket and company governance. They affect the legitimacy and effectiveness ofshare-based payment. Strengthening the construction of the internal and externalenvironment can strengthen the supervision on share-based payment, this is conducive toguide the optimization of long-term incentive effects. Thirdly, this paper selected the listedcompanies of actualizing share-based payment from2006to2011in Shanghai andShenzhen Stock Exchange as samples, and researched the application characteristics fromthe overall trend, nature of company, industry characteristics, plan elements. The study finds:the number of applications is still small and fluctuating, the samples are mainlynon-state-owned companies concentrated in manufacturing and IT industry. The incentiveobject gradually tends to core employees. Although the stock option is still dominated, theapplication of restricted stock showed an increasing trend. The stock mainly comes fromdirectional distribution, the incentive extent is small, the incentive period is short, and theindex system is lax. Fourthly, according to the settings of incentive period and performanceconditions, this paper found share-based payment plan failed to reflect the long-term andincentive features. In the aspect of the actual application effect, this paper select the implementation data between2006to2009, and choose the accounting performance indexstatistical researched the application effect of share-based payment in China listedcompanied. Overall the long-term incentive effect of share-based payment is not ideal inChina listed companies. Fifthly, based on the research of application environment,characteristics and effect of share-based payment in China’s listed companies, this paper putforward some opinions and suggestions on the regulatory authorities, capital market, and thelisted companies, wishing to contribute to the further promotion and application ofshare-based payment.