The Research On The Influence Of Management Incentive To The Growth Of Enterprises

As the rapid development of China’s capital market, Small and medium-sizedlisted companies have been developed to become the main force and excellentrepresentatives of Chinese enterprises. And it is an important part of China’s nationaleconomy. However, Small and medium-sized listed companies in China is growingrapidly, while it is also facing the problem of short business life and difficult to grow.Management as the main body of the enterprise, the hub of development and thevaluable human resources, it usually plays an extremely important role in the courseof the growth of small and medium-sized listed companies. So how to effectivelyorganize high-quality, high intellectual talent to play their talents, look for effectivehuman resource management practices and systems, it issued a new challenge for thetraditional theory of motivation and the traditional ways to motivate. It has alsobecome the key to survival and growth of small and medium-sized listed companies.It can be said that the reasonable and effectiveness of the management incentive is anecessary condition to improve the company’s growth. In this sense, the researchtopic of this article has important theoretical value and practical meaning.This paper selects the relationship between management incentives and thegrowth of small and medium listed companies as the research object, it uses thespecification analysis and empirical analysis. First, on the basis of Principal-agenttheory, Management Incentive Theory, Human Capital Property and EnterpriseGrowth Theory, it describes the current situation of management incentives in China.It analyzes the role of management incentives to growth of small and medium-sizedlisted companies on the theoretical part. Second, this paper selected202listedcompanies in the SME board as the sample, and it uses principal component analysisand builds the evaluation of the growth of small and medium-sized listed companies.The last, it uses the method of regression analysis and builds a regression model.The study on management incentive finds that the annual pay is the mostimportant incentive mechanism and is greatly sensitive to the growth. Managerial ownership is also an important incentive mechanism and has a significant impact onsmall and medium-sized listed companies. The number of managers who receivepayment in parent companies is positive related to the growth. The company scaleand finance level affect the growth significantly.Finally, this paper proposes policy recommendations of how to improve ourmanagement incentive in china. Include the following four aspects, policies andregulations, capital markets, internal governance, performance appraisal system.Theoretically it will make up for the lack of researches on the theme，perfect anddevelop the SME theory， growth theory and management incentive theory.Practically it will help make effective Policies in order to promote the growth of thesmall and medium-sized listed companies better.