Relevant Research Both Managerial Incentive And Capital Allocation Efficiency

Within an enterprise group, Capital is the Group’s core resource. But This configuring power of resources is in the hands of the enterprise group headquarters, which is mainly associated with the Group’s organizational characteristics. In enterprises within the Group, the Group headquarters is in administrative authority led, whose "authority" determines the Group’s headquarters in a dominant position on the allocation of capital. Then capital allocation efficiency largely dependents on kinds of decisions that the management of the Group headquarters make. So how to improve the group headquarters management’s initiative, so that they make full use of the rights to collocate the capital into higher investment opportunities projects? This has become a hot issue in academia, business research.This paper analyzes the domestic and international research literature on the management incentive and efficiency of capital allocation problem and found direct research between the two articles is still less. Again based on human capital theory, agency theory and efficiency of resource allocation theory to analyze the relationship between the efficiency of capital allocation and management incentive and to define the concept of capital allocation efficiency, management incentives, after that select the overall market sector 60 companies in 2011-2013 and receive 180 research samples to analyze the relationship between the monetary remuneration and capital allocation efficiency, and the relationship between pay equity and capital allocation efficiency, and get some preliminary conclusions on relationship between management incentive and capital allocation efficiency. Then, take the form of empirical research to study the relationship between the management incentive and efficiency of capital allocation. This section mainly explains the selection of data sources and indicators, hypotheses and build models, followed by descriptive statistics and regression analysis methods to verify the hypothesis, finally robustness test of the model. In the last chapter, the paper discusses the efficiency of capital allocation and management incentive relations conclusions and puts forward the corresponding measures to sound management incentive mechanism and improve capital allocation efficiency.By studying the following conclusions:(1) Both monetary remuneration and equity remuneration is positive correlation with capital allocation efficiency, then monetary remuneration and equity remuneration can promote efficiency in the allocation of capital; (2) the correlation between equity compensation and capital allocation efficiency is significant and positive, but the correlation between monetary remuneration and capital allocation efficiency is light and positive;(3)both the degree of pluralism and the separation of ownership is negative correlation with the efficiency of capital allocation, but the relationship was not significant; the degree of separation of ownership and capital allocation inefficient or not is a significant negative correlation, indicating that reducing the degree of separation of ownership helps companies become efficient.