Theory and Practice of Executive Stock Ownership Stimulation

Executive stock ownership stimulation is based on well-developed theories. The research on China's executives' preference and choice on stimulation mode shows that the Executive Stock Ownership stimulation is of great importance. But the present stimulation effect of executive stock ownership is still restrained by weak capital market, lower revenues of managers and unique traditional Chinese cultures. At present, enterprises should consider their own conditions and choose appropriate way when they adopt executive stock ownership stimulation.