A Study On The Managerial Incentive Mechanisms In Chinese Listed Companies

The prominent feature of modern publicly-owned corporation is separation of ownership and management, giving rise to principal-agent relationship. It is a centerpiece of corporate governance study how to improve producing and management efficiency and reduce agency cost in competitive markets, only to maximize profit or shareholder wealth. Practical evidences show that giving incentive to managers is an effective measure to eliminate or reduce agency cost. This article is a study on executive compensation in china's listed company based upon framework of principal-agent theory.This dissertation, firstly, reviews incentive theory which includes economics and management , Then analyzed the modelling research method of administrator stimulate in this basis. Secondly, we token empirical analysis for administrator stimulate of listed company in china. Finally, according to the result of theoretic and empirical research, we put forward the optimized designation idea of administrator stimulate of listed company corresponding to Chinese market characteristic.Comparing with existing issue of administrator stimulate of listed company, we have induced some innovative points: (1) applying the double principal-agent theory of the situation of china to traditional principal-agent theoretic model. (2) In optimized the frame of administrator stimulate of listed company in china, we not only expatiate some traditional notion in detail, eg. Improving Company management, normalizing government behavior, optimizing marketing construction and perfect the rule of law. We also discussed some new attempt eg. MBO and introducing EVA system.We found out the deep-seated problem in administrator stimulate via theoretic and empirical analysis. These problems consist of finding out the mechanism and influence factor of administrator stimulate, providing the idea to design administrator stimulate of listed company, try to provide the theoretic using for reference and practical reference for solving the problem of administrator stimulate. It is meaningful for optimizing company management structure of listed corp and enhancing sharehold wealth and the return of investment, then benignly promoting capital market.