Empirical analysis of listed companies on incentive stock option

Principal-agent problems are the difficult issues which cannot be solved in the process of operating. To solve the issue with incentive stock option has a solid theoretical foundation. Monitoring and incentives are essential to incentive stock options. Because the utility function of the agent can not be observed directly, the effect must be decided by the empirical analysis in order to judge the effect of incentive stock options. According to the SPSS analysis of state-owned listed companies, it can be known that the effect of incentive stock options of state-owned listed companies is not good, indicating that the supervisory mechanism of the company is imperfect.