Abstract:The law China Securities Regulatory Commission issued in 2016 cleared last legal hurdles of executive stock ownership incentive of Chinese enterprises. However, there still exist lots of controversies in academic circle about incentive effects of executive stock ownership incentive. In view of this, this paper sums up literatures at home and abroad, compares different opinions about how can executive stock ownership incentive influence firm performance, financing cost, investment orientation and executives' turn-over rate, financial fraud events or resisting the firm from being taken over. On the above basis, this paper discusses further study directions such as to study the profound influence of executive stock ownership incentive on executives' motivation, to address endogenous problems in stock ownership incentive studies, to compare different effects of different stock ownership incentive modes and to further discuss extensive effects of executive stock ownership incentive on a country's macroeconomy.