Research On The Impact Of Management Opportunism On Shareholders’ Benefits

The principal-agent problem caused by the separation of the two rights is a problem faced by modern enterprises.How to reduce the agency cost without affecting the business performance of the company is an urgent problem.Many listed companies have begun to explore an incentive and constraint mechanism to better deal with the problem.Management provides incentives.The most representative incentive and constraint mechanism is equity incentives.As a governance tool to motivate executives,it continues to improve in the market.This highly respected constraint mechanism also has disadvantages in the development process.It is gradually apparent that based on the theory of the rational "economic man" hypothesis,management will use its own power to conduct actions that harm the interests of shareholders in the process of increasing power.In addition,the information asymmetry caused by the separation of the two powers makes management conditional.Conducting opportunistic behavior,the study found that management has the motivation and conditions to implement opportunistic behavior under the equity incentive plan.The specific behaviors include opportunistic timing,earnings management,and insufficient information disclosure.However,executives under different incentive modes have different approaches to opportunism.An in-depth exploration of the opportunistic behavior of enterprises under different incentive modes will help the further development of listed companies’ incentive and restraint mechanisms and promote the improvement of corporate governance models.During the development process,Vanke explored a variety of incentive and restraint mechanisms,and proposed a business partner system in 2014.The proposed system has the consideration of solving agency problems,preventing malicious acquisitions,retaining talents,etc.,but In the process of writing and combing,I found that there are still many opportunistic behaviors of management under the system.In order to explore the opportunistic behaviors of management under the system and its impact on shareholders’ interests,and propose solutions,this article adopts Analyze the specific ways of management’s opportunistic behavior under Vanke’s business partner system,the reasons for the implementation of opportunistic behavior,and the impact of opportunistic behavior on small and medium shareholders,major shareholders and enterprises,and explore the shortcomings and Improve specific methods.It mainlyanalyzes the performance of opportunistic behavior of the management under the business partner system,and concludes that the management has opportunistic behavior such as opportunistic timing,inadequate information disclosure,and earnings management,and analyzes it using specific financial indicators.The law analyzes the impact of management opportunistic behavior on the business performance of enterprises under the business partner system.Finally,it puts forward suggestions from the enterprise level and external supervision to curb opportunistic behavior,improve the governance model and the business partner system.