Research On Management Stock Incentive Based On Corporate Value Growth

Management stock incentive is one of incentive mechanisms of Modern Corporation. Stock incentive can not only inspirit management and reduce agency cost effectively, but also attract talents. However, this incentive mechanism is not mature at present in China. The traditional enterprise theory focuses on production management and seeks for profit maximization. Therefore, the financial index system, such as profit, etc. is introduced to assess the performance of management, when enterprises grant the stock incentive plans to their management. However, the modern corporation theory emphasizes the goal of value maximization. The value maximization of enterprises is established in the process of value creation and the increase of the whole value of enterprises. Therefore, the introduction of indexes related with corporate value growth into the performance evaluation of management is scientific and reasonable.This thesis combines the personal ideas and current research results in the fields of management incentive and value management to study the relevance between value growth and stock incentive and then discusses the theoretical foundation of both subjects. In addition, it designs performance indexes based on corporate value growth and test these indexes through the empirical analysis.This thesis is composed of six parts:The first chapter is the introduction to the research background of corporate value growth and stock incentive. Then it discusses the significance of the research on management stock incentive based on corporate value growth and presents the related research methods.The second chapter includes the theoretical foundation of management stock incentive and corporate value growth, which introduces the concepts of value, corporate value growth and value maximization closely. Furthermore, it explores the relationship between corporate value growth and management stock incentive.The third chapter introduces the current position of management stock incentive and its main patterns in China, compares the advantages and disadvantages of these patterns. In addition, this thesis analyzes the effectiveness and existing problems of management stock incentive.In the fourth chapter, it analyzes the influential factors of corporate value growth and puts forward the index system of corporate value growth.In the fifth chapter, taking the listed companies in China that have completed the management stock incentive plans as samples; the thesis establishes the econometric models and carries them through the regression analysis.The sixth is the summary and prospect of this thesis.