Research On The Behavioral Tendency Of Manager Of Private Enterprises And Corporate Governance

Research on relationship between possessors and managers of private enterprise has drawn wide attention among scholars. An argument between Management and economics on managers as self-profit agents or success-propelled stewardship has long existed. Our research finds that the probability has still existed that managers hired by a private enterprise are treated as agent and stewardship in the meantime nowadays. This probability has brought in obvious effect on the establishment of the incentive policy for managers.The behavior choice of managers is not only influenced by such factors as mentality and circumstance, but also the behavior of trustor, enterprise management philosophy and enterprise culture. Under the context of stewardship relationship, managers will behave as stewards; on the other hand, managers will behave as agents under the circumstance of agent relationship. The context for an enterprise will change from stewardship mode to agent mode as the enterprise is expanding. As a result, the behavior choice of managers will be changed.The agent theory and the stewardship theory have their own limitation, so administering enterprise by adopting one simple agent or stewardship mode can't effectively improve enterprise's performance. We need to combine these two theories. The dissertation set up a probability model for the positioning of managers. Also, we use the experiential data of 243 private listed enterprises to verify our conclusion. We find out that the stewardship mode has played a more active role in benefiting the enterprise. Following the enterprise's development, a transition from stewardship to agent mode has been strengthened in the behavior of managers.As a result, when establishing the external and internal governance policy, we should flexibly evaluate and consider the devising of the two mechanisms for control and cooperation of private business managers. We need to combine restriction with incentive policy, judging and defining the relationship between board of directors and managers. Following the stewardship theory, while an enterprise is at its fledging stage, the board of directors should build a relationship based on mutual trust and cooperation with managers. However, according to the agent theory, board of directors should strictly control the overconfident mentality and opportunistic behavior of managers while the enterprise has been expanded.