An Empirical Research On TMT Incentive Mechanism Of Our Country's Listed Companies

From Berle and Means in 1932 and then, the entrepreneur incentive has become a core topic of the contemporary economics, which is not only affect the efficiency of the whole resource allocation in macroscopic layer, but also is the key to perfect modern corporate govenance. During the period of economy reform of our country, how to set up an effective incentive mechanism is crucial for promoting state-owned enterprise's reform. This thesis starts from analyzing pay and non-pay incentive mechanism and investgating their combination, which empirically tests the effectiveness of the adoption of top management team(TMT) incentive mechanism. We expect to provide some useful thought and suggestions for the development of TMT incentive mechanisms.The main topics of this thesis include: (1) Basing on analyzing all kinds of existent incentive mechanisms, we use the mathematics model to investigate the necessity of combining pay and non-pay incentive mechanism of TMT to a kind of organic and systematical incentive system. (2) How about the effect of salary and stock-share mechanism of Chinese listed company, and the relationship with firm performance, and what factors influence them. (3) The present situation of TMT salary equity of Chinese listed company, and the working regularity on the firm performance, and what factors it is influenced.The research discovery from this thesis indicates: (1) The necessity of organic combining both pay and non- pay incentive is not only exsisting, but also is increasingly necessary along with the improving of the payment, and using properly the non-pay incentive can cut down incentive cost. (2) The TMT salary mechanism has begun to work in Chinese listed company, and it has positive effect on firm performance. The positive influence on salary is coming from independence of directory and company size, and the negative influence is coming from supervisor proportion and concentration degree of ownership. It shows difference in different regions and company types, and does not show the difference in different firm growth rate and industry. (3) Stock-share is not prevalent as a kind of incentive mechanism in our country. The regression analysis shows a "U-style" curve between TMT stock-share and firm performance, and displays "zone-effect". The positive influence on TMT stock-share is coming from firm growth rate, and the negative influence is coming from supervisor proportion and company size. It shows difference in different company types, regions and industry, and does not show difference in different firm growth rate and TMT salary. (4) There is a likeness of Gini Coefficient between the TMT pay and the whole country. The...