The Incentive Mechanism Of Listing Companies In China

The subject of this essay is on incentive mechanism of the listing companies in China. State-owned enterprises as a very important part of China's economy, play an important role in the whole national economy. The achievements of state-owned enterprises have signality on China's gross economy development. Normative and effective incentive mechanism established in enterprises is chief. China's enterprises were bom out of planned economy era. From the reform of the gross economy mechanism in 1981, the reform of state-owned enterprises had taken measures of allowing enterprises to have more autonomy and profit retention, substitution of tax payment for profit delivery, contract with and tenancy enterprises. The key is adjusting the residual claimancy proportions between state and enterprises and expanding the range of enterprises operators' autonomy. China's listing companies are almost through normally strypped-down state-owned enterprises and the jacket collars among them. Their outstanding achievements and interior management mechanism are superior to others.Studying the incentive mechanism of China's listing companies is a job involving widely and creatively. The data is very numerous and complicated. This essay does not confine itself to existing all incentive mechanisms of listing enterprises, but based on essentiality fundamental, pays more attention to the theories and practices of senior directors' incentive mechanism in china's listing companies.The essay is composed of the preface and three chapters, and the main contents in chapters are as follows:Chapter One proves the essentiality of establishing the available incentive mechanism in modern enterprises through some knowledge and models of modern enterprises theory. And dispart the incentive mechanism in modern enterprises to two kinds: dominant incentive mechanism and recessive incentive mechanism. And introduces several kinds incentive mechanisms of China's traditional state-owned enterprises.Chapter Two studies practical incentive mechanisms in China's listing enterprises on collectivity and demonstration through some theories and methods of Econometric. The financial data come from 1151 A share listing companies which had been on market by the end of 2001. Emphasize the correlation between the salaries per year and the proportion of share-holding of senior managers in China's listing companies and management performance and size of enterprises. And readers can realize clearly the cause of formation, actuality and the hands need reform of incentive mechanisms in China's listing companies.Chapter Three attempts to present basic thinking on the countermeasures and policy designs about the exterior market of enterprises including capital market, executives market, products market and interior systems of enterprises, based on the analysis and studies in the previous three chapters and the outcome of actuality analysis.The study of incentive mechanism in China's listing companies can summarize the achievement and failure of China's economy system reform during about 20 years. Adjust the direction of the reform on state-owned enterprises and deepen the reform through the experiences and lessons. Then really establish the modern enterprises systems as persisting in the separation of government functions from enterprise management and separation of ownership from management so that enterprises can operate independently.With such wide-ranging and complex theories and practice in incentive mechanism of China's listing companies, the essay makes a systematic and in-depth study only from a certain aspect and the efforts in innovation and still limited. It is obvious that the research level of incentive mechanism in China's listing companies still needs to be upgraded by the combined efforts of experts and scholars in incentive mechanism and its related fields.