Whether The Executive Incentive Will Enhance The Enterprise Value?

The exposure of a series of company financial scandals such as Enron and WorldCom,as well as Obama's "mandatory pay limit" for the financial industry,made management incentives the focus of attention.From the "59-year-old phenomenon" caused by the lack of incentives early in our country to the subsequent excess incentives,all this shows that how to formulate a reasonable management incentive mechanism becomes an important proposition for corporate governance.?The Guiding Opinions on Deepening the Reform of State-owned Enterprises?issued in 2015 put forward the development goal of“proactively developing a mixed-ownership economy ”,this makes the mixed ownership reform of state-owned enterprises more and more attractive to everyone.Management incentives is one of the most important aspects of strengthening the corporate governance of mixed-ownership companies.Therefore,based on the overall analysis of the impact of management incentives on corporate value,this article compares and analyzes the effects of different types of property rights listed company management incentives on corporate value,and provides a theoretical basis for strengthening the corporate governance structure of mixed ownership enterprises.This article first selects Shenzhen and Shanghai A-share listed companies that implemented equity incentives in 2011-2013 as sample companies,uses the three-year data after the implementation of equity incentives as research samples,and adopts random sampling methods to select the same industry and scale as the sample companies.A similar number of listed companies that have not implemented equity incentives are used as a paired sample,and a horizontal analysis of the company's value is performed using a regression analysis method to verify whether the implementation of equity incentives can enhance the value of the company.In addition,this article selects three years of data before and after the implementation of equity incentives by the sample company as a research sample,and uses the paired sample t-test method to longitudinally analyze whether the implementation of equity incentives can enhance corporate value.The research results of these two methods all indicate that the implementation of equity incentives can enhancethe value of the company.At the same time,this paper compares and analyzes the differences in the impact of equity incentives on the state-owned and non-state-controlled listed companies.The results show that the implementation of equity incentives can enhance corporate value,but non-state-owned listed companies implement equity incentives on corporate value.The incentive effect is more obvious.Secondly,this paper uses regression analysis to examine the impact of different management incentives on firm value,and their impact on corporate value under different property rights.The research results show that the ratio of shareholdings and monetary compensation of listed companies' management has a positive impact on corporate value,and the incentive effects of non-state-owned listed companies in these two aspects are better than those of state-controlled listed companies;It has a negative impact on corporate value,and the negative impact of state-controlled listed companies is stronger than that of non-state controlled listed companies.The administrative consumption of the management of this article is measured by the ratio of administrative expenses and operating income,but because the administrative expenses are not all generated by on-the-job consumption,this may make the research results inaccurate.In addition to the nature of property rights will affect the relationship between management incentives and corporate value,factors such as industry,region and management personal characteristics will also have an impact on the relationship between the two.This article is not limited by the research subject.In order to enhance the effectiveness of management incentives,listed companies should establish a scientific and effective performance assessment system,and should focus on establishing incentive mechanisms that combine long-term incentives with short-term incentives.Transparency of management remuneration should be maximized,and state-controlled listed companies should gradually Introduce market-oriented talent competition mechanism.