Stock Options: Incentives, Embeddedness, or Legitimacy?
Read
DownLoad |
| Title | Stock Options: Incentives, Embeddedness, or Legitimacy?
|
| Author | Chen Shihua and Li Weian |
| Organization | School of Business Administration, Dongbei University of Finance and Economics |
| Email | shihua9872@163.com |
| Key Words | Stock Options; Principle Agency; Social Embeddedness; Legitimacy |
| Abstract | After split-share structure reform and revision of “Company Law of the People's Republic of China” and “Securities Law of the People's Republic of China”, the listed companies in China gradually carry into the “real” stock options. The paper tries to answer why the listed companies adopt stock options in the institutional backgrounds of China? The paper explains the question from the theory of social embeddedness and legitimacy, and views the theory of principle-agency as the analytic benchmark. Based on 1329 listed companies and 2005Q3-2008Q2 12 spells, the paper uses event history analysis and Cox proportional hazards model, and finds that, (1) the reason that the listed companies in our country adopt stock options is little for incentives and most for legitimacy or embeddedness; (2) the applicability of each theory into expounding stock options of the listed companies in our country is legitimacy, social embeddedness, and principle-agency in turn. These findings offer not only two new theoretical perspectives for the academy, but some valuable implications for regulatory commission as well. |
| Serial Number | WP217 |
| Time | 2012-02-15 |
|