Research On Executive Implicit Incentive In State-Owned Enterprises

In recent years,the total income of state-owned enterprises in China is declining,the inefficiency of state-owned enterprises has become a major resistance to China’s economic development.State-owned enterprises are better than private enterprises in both the enterprise size and the asset allocation,and has the government’s strong support,but its performance is not satisfactory.This paper examines the executive implicit incentive of state-owned enterprise N,the first is to test,perfect and develop the theory of implicit incentive of state-owned enterprises,and the second is to provide reference for the establishment and application of implicit incentive mechanism of state-owned enterprises in China,improve the performance of state-owned enterprises and improve operating efficiency.This paper chooses the case of executive implicit incentive of state-owned enterprise N as the research object,and combine the case analysis method and the normative research method to do the research.It is hoped that the research on the implicit incentives for executives in state-owned enterprises in our country can promote the development of the theories about implicit incentive.Based on analysis of the problems existing in the application of implicit incentives,suggestions for optimization are put forward to improve the operation efficiency,performance and competitiveness of state-owned enterprises This paper first introduces the background,the low efficiency of state-owned enterprises in China,many scholars study the enterprise performance and incentive mechanism to solve the problem of principal-agent,and then introduces the research situation of implicit incentive from the reputation incentives,job promotion,control incentives and on-the-job consumption these four aspects,and the concept of implicit incentive.And then introduces the basic theories of implicit incentive,including principal-agent theory,incomplete contract theory,incentive theory,behavior motivation theory,psychological ownership theory,lay the theoretical basis for the case analysis,and analysis the mechanism of the various implicit incentive,and compare the different about implicit incentive and explicit incentive,put forward the advantage of implicit incentive.Then,the paper analyzes the basic situation and the operating situation of the case enterprise,and then analyzes the application situation of the executive implicit incentive in the state-owned enterprise N,reveal the problem of the executive implicit incentive in the state-owned enterprise N from the reputation incentive effects weakening,job promotion mechanism alienation,control right incentive twist,and on-the-job consumption blurry.Then analyze the reasons of the problems existing in the executive implicit incentive of the case,include the internal operation mechanism is not perfect,the external market environment is not perfect,and the government legal system is not perfect and so on.Then,put forward some suggestions.including perfect the internal governance structure,optimize the enterprise executive implicit incentive means,build a sufficient market competition mechanism,improve the quality of professional managers on the market,improve the information disclosure system and the separation policy of government and enterprise and so on.This paper argues that the short of implicit incentive of state-owned enterprises is mainly manifested in the reputation incentive effects weakening,job promotion mechanism alienation,control right incentive twist,and on-the-job consumption blurry.It needs to perfect the internal governance structure,optimize the enterprise executive implicit incentive means,build a sufficient market competition mechanism,improve the quality of professional managers on the market,improve the information disclosure system and the separation policy of government and enterprise to improve the problems of the use of implicit incentive.The innovation of this paper mainly focuses on the application of case study to analysis implicit incentive in state-owned enterprises,and puts forward some suggestions to optimize the implicit incentive system of state-owned enterprises,perfect and supplement the theory of incentive in our country.