Stock-based compensation in Chinese listed firms

Junqi Dong, Yuexin Liao and Qingquan Xin

Chapter 10 in Research Handbook on Corporate Governance in China, 2025, pp 204-224 from Edward Elgar Publishing

Abstract: This study examines the demand for stock-based compensation among Chinese listed firms in the context of the institutional environment and regulatory policy in China. Combining the cases of listed firms in China, we introduce two common stock-based compensation tools: stock options and restricted stocks. Based on 3507 stock-based compensation plans launched by Chinese listed firms from 2006 to 2022, we find that only 20.3 percent of chairs and 23.7 percent of general managers were included as incentive objects in these stock-based compensation plans. In light of theories and literature on stock-based compensation, we conduct a preliminary discussion on the motivations, characteristics of terms, and economic consequences of stock-based compensation plans embedded in China's institutional framework. We also highlight some research questions that warrant further investigation.

Keywords: Stock-based compensation; Managerial incentives; Stock option; Restricted stocks; Regulatory policy; China (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035312603
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035312610.00016 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22350_10

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().