A Study Of The Balance Mechanism Of Incentive And Constraint For Managers Of SOE

Governance mechanism directly affects the survival and development of enterprises. The incentive and constraint for managers is core problem of modern corporate governance. In some degree, state-owned enterprises take efficiently advantage account from the balance of incentive and constraint mechanism that is built. At present, the incentive and constraint for managers is in low efficiently Nash equilibrium situation and attribute to low efficiently of enterprises.The main factors impact the balance of the incentive and constraint mechanism as follows: managerial option mechanism, performance evaluation mechanism, inner constraint mechanism, out environmental constraint mechanism, incentive and constraint mechanism in compensation, ect. As the factors are correlated, one another the paper tries to set up a framework to study the balance be impacted by the factors.Balance factors of the governance model to foreign typical companies and reforming procedures of incentive and constraint for managers to stage-owned enterprise by analyzing. The paper tries to explore the current existing problems of incentive and constraint mechanism for managers.Considering the problem in the current system, the paper brings forward ways to improve balance mechanism of incentive and constraint for managers. According to theory of dynamic balance and institution reforming, the paper brings forward plans to improve the balance system in different times.