Entrepreneurs Reward In The Game Under The Management Of Research

Information is of increasing importance and presents itself in every aspect of people's life with the internationalization of production supported by modern scientific technology. The development of modern enterprise demands the separation of ownership and management. Then finally an internal game setting between owner and manager comes into being as a result of the asymmetry of information. In China, the development of market oriented socialist economy gave birth to a generation of entrepreneurs with remarkable managerial talent. The study of reasonable reward to entrepreneur in such unique circumstances aroused interest from academia and business world as well. While no decisive conclusion has been made as far as human resource concerned, attractive packages have been reported as burgeoning phenomena and hot topics nowadays.The lack of entrepreneur's reward incentives is quite evident under the situation of separation of ownership and management in Chinese enterprises today. How to design proper reward incentive system and combine the individual needs of entrepreneur with the goal of corporate value maximization so as to promote right financial decision is the starting point of this paper. The parametric agent model can be used to deduce the best contract for entrepreneur with asymmetric information. The setup of payoff incentive system for Chinese entrepreneur should be based on this theory and a mix of optional reward plans like annual package or stock & option should be structured to a feasible solution.The paper looks back on the reform of management's payoff system in China and reviews the western reward status represented by that of U.S. enterprises as well. The case of Chinese Huaneng Group has been used to discuss the establishment of an appropriate reward system with Chinese features. The paper also analyses the obstacles in real world and policy guide in China and introduces the tendency and innovation of Chinese entrepreneur's reward system.There's a lot of research done in the fields of game theory and reward system for entrepreneurs respectively both domestically and abroad. The paper tries to combine the two aspects and put the problem of entrepreneur's reward into the consideration of...