Study On Management Incentives And Their Impact On The Performance Of Media Listed Companies

With the economic development and upgrading of industrial structure, mediaindustry has a bright prospect. Along with the reform of cultural management system,more and more media companies have transformed to share-ownership companiesand became listed companies. However, there are still many problems of ownershipstructure and corporate governance structure in media listed companies. Therefore,this paper does the research about media listed companies’ manager incentive.Afterthe modern enterprise system set up, the management incentive problem has becomethe popular issue. With the separation of control right and ownership, the managers’ability and their effort decide the future of a company. By changing managers’incentive level, one can affect the corporate performance. According to the availableliterature, most scholars concentrated on internal incentive. But there are lack ofliteratures which had combined internal incentive and external incentive.Based on the summarization of present literatures, this paper analyses theincentive influence mechanism on performance. After the theoretical analysis, thepaper do the empirical research by selecting15media listed companies as anempirical analysis sample and building a panel data model. The internal incentivevariables include monetary compensation, managerial ownership and perkcompensation. The external variables include product market incentive and capitalmarket incentive. The performance is financial performance comprehensive scorewhich is calculated by factor analysis. The indicators consist of profitability,solvency, shareholder profitability, cash flow capacity. The result shows thatmonetary compensation and managerial ownership are not significantly related tocorporate performance; perk compensation are passively related to performance; theproduct market pressure is significantly positively correlated, but the significance isnot stable; the capital market is strongly positive. Finally, the paper makes somesuggestions.The media industry is in the period of reform and development. In order to seizethe strategic opportunities to enhance their performance, the corporate must do theirbest to stimulate the managers and improve the corporate governance structure. This study hopes to draw reference to media companies’ internal and externalmanagement incentive.