Governance Effects And Mechanism Of Executive Reputation Incentive:Research Under The Integrated Frame Of Qualitative And Quantitative Analysis

The separation of ownership and management rights of modern companies,coupled with the asymmetry of information and the incomplete contract,result i in the principal-agent problem.Corporate governance structure and mechanism are the key ways to solve the above-mentioned agency problem,and executive incentive contract is one of the most important corporate governance mechanisms.In the field of corporate governance research,the study of explicit contracts such as remuneration,equity and so on can be described as voluminous.However,during many years of corporate governance practice developing,people called into question the explicit incentive contracts,many empirical studies have not reached a consensus conclusion.In recent years,the negative effects of such incentive contracts are increasing.Monetary compensation is the most common form of incentive contract,its short-term malpractice highlights the general public resentment and questioned.Since the 1950s,the equity incentive has been favored by the company.Undoubtedly,equity incentive as a medium and long-term incentive contract,indeed to a certain extent,to promote the interests of the principal and the interests of the convergence of agents,but it has obvious double-edged sword characteristics.In the Chinese context,state-owned enterprise executives pay control regulations have been introduced,especially the salary control policy introduced in 2015 and the executive pay cuts storm,once again become the common focus of theory and practice.In this context,the implicit incentives such as the reputation contract and its governance effects and realization have become a question to be solved both in corporate governance theory and practice.In order to further deepen and expand the research system of reputation incentive,and also to provide more useful reference for the design of enterprise incentive mechanism,this article discusses the mechanism and the effect of the reputaition incentive contract of the senior management under the Chinese situation by using theoretical deduction method,case study method,empirical research method and comparative research method comprehensively,that is,in the framework of qualitative research and quantitative study.Compared with the previous research,the main innovations of this study are as follows:First,by using single case study method,the reputation for executives with signals,tools and psychological stimulation of three aspects have been found,and on the basis of this,the process of executive reputation to achieve incentive effectiveness have been described.Secondly,by the combination of theoretical deduction,qualitative interview and empirical research,the research verifies that the incentive contract of senior executives in the value distribution and value creation and its interaction with explicit incentives from the traditional principal-agent theory to the incentive contract integration theory.Thirdly,this paper analyzes and interprets the internal mechanism of executive reputation incentive by using the multi-case research method and the relevant viewpoints of social embedding theory.In addition to Chapter 1 and Chapter 6,the main structure of this paper is as follows:The existing research literatures are reviewed.In the course of the research on the reputation of scholars at home and abroad,many achievements with high academic value have been formed.By combing the existing literature,we can see that the research on reputation mainly focuses on the two levels,that is,the organization and the individual.Earlier research focused on the reputation of the organization level,in recent years,scholars concerned about the individual reputation of executives gradually increased.This chapter first reviews the research of reputation under the multi-disciplinary paradigm of economics,sociology,management and so on.On this basis,it reviews the connotation,characteristics and governance effectiveness of executive reputation.At last,the research on executive reputation incentive contract is summarized and evaluated.By using the local exploratory research method of single case,using the combination of "test theory" and "construction theory",the information found on the basis of empirical investigation is matched with the theoretical model based on theoretical prediction,The paper further explores the effect of the triple incentive of the reputation,and summarizes the new research findings from the practical level,and explains the way to realize the incentive effect,that is,the appeal of the executives to reputation is embodied in the signal,instrumental and psychological utility,and has the motivating and stimulating process.Combining theoretical deductions,qualitative interviews and quantitative analysis of large samples over the years,I do a theoretical and empirical study on the governance effects of executive reputation incentives.Firstly,this paper sums up the implicit,long-term,binding and hierarchical attributes of executive incentive contract,which are different from the explicit incentive such as salary and equity,and deduces the dual dimensions of executive incentive effect and the realization path.Secondly,we use the panel data of Chinese listed companies to test the influence factors and governance effects of the incentive contract intensity of senior management team.As the reputation of executives with hierarchical characteristics,including the reputation of the executive team and the individual CEO reputation at two levels.Then the paper use the panel data of Chinese listed companies to test the influence factors and value creation effects of CEO reputation incentive strength.From the perspective of social embedding,this research analyzes the concept of executive capital as embedded subject,relational embedding and structural embedding as embedded objects,and introduces the concept of reputation capital.Through the multi-case study of local exploratory research put forward the society embedded executive reputation incentive mechanism.The results show that the social embedding of executive behaviors is realized through the relational embedding and structural embedding.The two factors lead the behavior of the top management through the five elements of social behavior criterion,commercial reciprocity principle,trust mechanism,secondary trust mechanism and three-level network structure,and ultimately the formation of reputation capital.Reputation capital through the psychological capital,human capital,social capital,triple effect of incentives on the role of senior management behavior,the formation of social embedded in the prestige incentive mechanism of the closed cycle.This study is not only an exploratory innovation of existing theory,but also has some practical significance.The level of company executives’ efforts is fundamental to the company’s development,and the key to its efffforts is the effectiveness of the incentives.In reality,many companies give senior executives material incentives through the compensation system,but the reputation incentives are not yet adequate.Corporate executives reputation incentive can enhance the overall effectiveness of the company’s incentive system,and enhance the psychological capital and human capital in the same time,and the cohesion of social capital of the company.Through the theoretical and empirical research,this paper puts forward some policy recommendations as follows:constructing the multi-dimension executive reputation evaluation system;forming the corporate reputation carrier by building the corporate biography system;enhancing the reputation capital value of the senior management to promote the principal utility of the incentive contract;and the social control function of reputation should be brought into play in order to realize the cooperation of reputation incentive and explicit incentive;the role of social behavior criterion and commercial reciprocity principle should be exerted by strengthening the multi-dimensional network communication of senior executives;to play the role of media,government and other stakeholders on the company’s reputation and evaluation of the role of signal transmission.Due to the limitation of length of article and the level of author,this paper has some limitations in the study of object selection and the measurement of related variables in the case study,which will be further improved in the future research.Subsequent research should be extended from the following aspects:through the theoretical and empirical research to further explore the personal characteristics of executives,executive team characteristics and other context factors on the executive incentive contract incentive effect;through the qualitative research methods to explore the executives incentive contract incentive impact on the behavior of executives;to explores the differences in the effectiveness and mechanism of the reputation incentive contract between executives in different cultural backgrounds or governance models.