The Research On Incentive Mechanism Of Chinese Listed Tourism Company Based On Corporate Governance Angle

In 2009, the state council issued"opinions from the state council about accelerating the development of tourism industry"(2009 No. 41 of the state council), which has made clear orientation for the development of Chinese tourism industry. With the development of Chinese tourism industry, this paper takes the micro-economic cooperate governance point of view, addressing the influence of incentive related indicators on the overall operating performance of the listed companies in this industry in China. Based on these analyses, suggestions about how to set up and improve incentive mechanism in these companies are provided. And in practice these suggestions will be very meaningful in improving the governance level and the operating performance of these listed companies in the tourism industry in China, and the development of the tourism industry as well.The relationship between the incentive mechanism and the operational performance of the listed tourism companies in China is worthy of study for its great theoretical and practical value. With the development of the tourism industry in our country and the improvement of modern corporate system in listed tourism companies it is very necessary to discuss how incentive mechanism influences the company performance.From the corporate governance angle, the thesis focuses on the establishment and improvement of incentive mechanism in Chinese listed tourism companies. The thesis initially probes into the relationship between incentive mechanism and company performance of listed tourism companies in our country. Based on the relevant theories and research documents all over the world, the thesis brings forward to four hypotheses: Firstly, the relationship between manager yearly salary and performance of our listed tourism companies appears correlative; the relationship between executive stock option and performance of listed tourism companies appears correlative; the relationship between capital structure and performance of listed tourism companies appears correlative and the relationship between independent director numbers and performance of listed companies appears correlative. And then the thesis chooses 25 listed tourism companies in our country as the sample companies. According to their annual financial report, the top three yearly salary of managers and board directors are used to describe the salary incentive; percent of executive stock option our of all company stocks is used to describe the stock incentive; percent of independent director number in board directors is used to describe corporate governance structure and ROA is used to describe the performance of sample companies. With these indexes, the thesis testifies whether the incentive indexes are related to the performance of sample companies during 1999 to 2008 through Panel Data Analysis. Correlative relationships are found both between executive stock option and company performance and between independent director percent and performance of sample companies. Finally, the thesis raises some suggestions up on the incentive mechanism optimization for the listed tourism companies in our country.