The Study On Models Of Combined Incentives To Top Managers In Chinese Listed Companies

The incentive to top managers has become the core question in corporate governance because of separation of ownership and control rights.How to establish a scientific combined incentive model according to economic environment,social culture and interior situation of corporate has been current academic focus,which may improve corporate performance and value by inciting top managers to make decisions in accord with corporate goal.Founded on human hypothesis theory and psychological contract theory,the comprehensive need is put forward and the characteristics are analyzed on the basis of existing documentation and conversation.Measure items with good reliability and validity are developed and tested by investigation samples of listed companies.The dimensions are recognized in term of the empirical result and the dimension model of comprehensive need is established.The importance degrees of four factors are calculated and ordered by both methods of entropy and maximizing deviations.It indicates that existence need is still one of the important motives for top managers to work hard.At the same time,the power to the appointed positions,harmonious relationship,belonged to professional class,good reputation and capability promotion are also their pursuits.The different needs are compatible rather than independent.The premise and restriction of combined incentives to top managers is determined on game theory.Combined incentive models are established all around.The optimizing model of principal-agent on salary,monetary and latent control is developed.The combined model of incentives is founded on innovative policy in the view of the top managers' latent value and needs.The combined model of synchronous incentive is built ground on comprehensive need. Through model analysis both the combined mode of incentive on cost budget and the combined mode of synchronous incentive are proposed in order to inspirit innovative consciousness as much as possible,to improve enthusiasm and endeavors so as to increase performance of company.Through empirical study on status quo of incentives to top managers,the combined countermeasure of incentive is proposed on the combined model of synchronous incentive and interior characteristics and exterior environment.Firstly,industry difference of combined incentives to top managers is studied by describe analysis with 1026 samples of listed companies in 2006.Secondly,the regression analysis between incentives to top managers and corporate performance is made by taking industry,size and ultimate controlling shareholder as regulation variables.Combined countermeasures of incentive are brought forward in accordance with the combined model of synchronous incentive and liner result.The reward system should incarnate dynamic combination including current insurance income and short-time as well as long-time risk income.Listed company should determinate flexibly combined incentives to top managers considering corporate characteristics.The control incentive should emphasized ration and stability.Reputation incentive mechanism should be market-oriented.Incentive policies to innovation should be set up.Harmonious culture environment should be created in order to cultivate sense of responsibility and mission.Finally, on the basis of foregoing study,a political suggestion on combined incentives to top managers in listed company in china is proposed to intensify incentive effect.