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Positive Research on Economics Consequence of the Stock Option Incentive Plan

  • Yongjun Guan
  • Min Qu
  • Xiaojing Liu
  • Xiuna Liu
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 208)

Abstract

In this paper, the economics consequence of 202 listed companies, which have announced Stock option incentive plan in Shenzhen and Shanghai A-Share markets after the year of 2006, is tested by event study, considering the market reaction. Moreover, to what extent the different incentives levels from Stock option incentive plan affect the anticipated performance is analyzed empirically through the use of multi-linear regression model. The results demonstrate that the Stock option incentive plan announced by the listed companies in China produced a positive impact on the stock prices, and there is a significant economics consequence while investors have a higher expectancy on effects of the incentives towards the companies with higher profit growth and higher growth capacity. And the investors in China more focus on the event of Stock option incentive of the listed companies, so that they ignore the specific incentive levels of the Stock option incentive plans.

Keywords

Stock Option Incentive Plan Event Study Economics consequence 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Yongjun Guan
    • 1
  • Min Qu
    • 1
  • Xiaojing Liu
    • 1
  • Xiuna Liu
    • 1
  1. 1.Finance & Economics DepartmentGuangxi University of TechnologyLiuzhouChina

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