An Empirical Study Of Relationship Between Management Incentiveand Corporate Performance Of China’s Private Listed Company

As the ceaseless improvement of China’s macroeconomic environment and thedevelopment of private economy growing, the outstanding market vigor of private listedcompanies is gradually full released. But due to the particularity of the family-ownedenterprise and the imperfect modern enterprise management system, problems such as theownership structure and governance structure of private listed companies needs to improve,corporate agency cost much too high are still exists, therefore, including equity incentive,private enterprise senior management incentive effect did not give full play. In this context,research about the effect of private listed company management incentive, factors affectthe implementation of management incentive private listed companies, methods to improvethe system of private listed company executive incentive are of great significance.Therefore, from the perspective of the incentive theory in management, through referencein the aspect of management motivation at home and abroad, selecting2012domesticprivate listed company management equity incentive data for empirical research.With the return on equity as explanatory variables, the executive compensation, equityincentive, on-the-job consumption as explanatory variables, the company scale, capitalstructure, company operation ability as control variable, in combination with researchachievements at home and abroad put forward six theoretical assumptions. Throughregression analysis and CHOW test respectively carried on empirical test on the sampleoverall level samples, different industry level samples, different scale level samples andsamples of different regional level, and explain the relationship between variables andinterpreted, confirmed the six hypotheses that proposed. The whole samples’ empiricalanalysis results show that the company’s operating ability, executive compensation,on-the-job consumption, firm size and equity incentive these five variable coefficient hasdecreasing relations between cooperate performance, and also shows that on-the-jobconsumption as a recessive incentive mechanism are playing an important role in executive incentive of listed private enterprises. The empirical results of different sample levels showthat the enterprise management incentive methods of different industries, different scaleand different parts have significant different influence on corporate performance.