Research On The Incentive And Restraining Mechanism Of Agents

With the gradual maturity of market economy, the establishment and perfection of professional managers'(agents') incentive and restraining mechanism is quiet important for enterprises to survive and develop. Currently, there are still some problems in the establishment and perfection of agents'incentive and restraining mechanism in our country, such as imperfect incentive mechanism, inappropriate restraining and uncomfortable social condition. In view of these factors, it is important and necessary to run an effective institution which can make managers share profits and risks with shareholders.Based on the former research and the Principal-Agency resulted from the separation of ownership and operation in the development of enterprise institution, this thesis will put forward the hypothesis of incentive and restraining mechanism by researching on the interrelated theory. Several issues are elaborated in this thesis: firstly we will analyze the problems of agents'incentive and restraining mechanism. Secondly, we will put forward suggestions on establishing effective incentive and restraining mechanism for agents, so the agents can voluntarily work hard for the principals'profit and the limited resource can be highly utilized for maximizing the social anticipant object. Finally, we will take A company as a case, and concretely analyze the incentive and restraining mechanism of this company. The thesis mainly adopts comparison research and combines with positivism and norm research.The thesis focuses on suggestions on establishing effective incentive and restraining mechanism. Firstly, the enterprises should attach importance to Long-term incentive, such as establishment of stock options. Meanwhile, the enterprises should not ignore the affection of mental incentive. Mental incentive should be decided by the economic relationship and social environment where the agents are subject to. Secondly, reinforcing internal restraining mechanism in the enterprises should play an important role in the improvement of restraining mechanism. In other words, strict internal standards can restrict the agents'actions. On the other hand, the external restraining mechanism such as management market, product market, capital market and law should be also regarded.