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Research On Agent Incentive Mechanism Based On Chinese Unique Circumstances

Posted on:2005-08-01Degree:MasterType:Thesis
Country:ChinaCandidate:M LiFull Text:PDF
GTID:2156360122986636Subject:Finance
Abstract/Summary:PDF Full Text Request
When the separation of ownership and management began, the conflicts of goal and risk preferences between principals' and agents' appeared. The actual dilemma calls for Agent incentive mechanism to fill up the gap. However, our country's unique situation has set piles of barriers to western well-developed incentive modes. Author is striving to find the ideas behind western incentive mechanism in order to imitate the effects of western incentive scheme by available domestic tools.Author's research starts with the basic aspects, such as Total Compensation, stimulation modes etc. Especially, author made complete analysis on stock option incentive, which played a leading role in western incentive schemes. Furthermore, the theoretical meaning and practice utilities of incentive mechanism study in China were listed and the gap between Chinese company and western matured incentive accomplishments was reasoned. With the retrospect of theory of principal and agent, theory of financial derivatives and other neo theories or experiment results, author placed the factors that should be considered in designing of incentive scheme. And moreover, author presented his own opinions about executive incentive projects matching Chinese requests from different points of view and handed the domestic incentive designers some important rules to follow based on summing-up of experience of western counterparts. Finally, author's synthesis of the achievements of former researchers and own thoughts formed step by step resulted in a series of exercisable executive incentive projects for various Chinese corporations and proposals for government and its branches. Special research went to state-owned enterprises on downsizing of state-hold stakes, improving property right arrangement, increasing performance and so on. Author show those unlisted companies (especially those plan to go to public soon) and corporations highly relied on their upstream or downstream enterprises some new way out in incentive designs.
Keywords/Search Tags:Separation of Ownership and Control, Stock Option, Incentive Mechanism
PDF Full Text Request
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