Operators Incentives Financial Economics

The separation of ownership and management makes it urgent to inspire operators. I think the existing research on this problem in terms of economics and management science is not overall. As the problem of inspiring operators involves financial income distribution and performance evaluation, it is necessary to use relevant financial theory to solve 'how to inspire management'. But only if using financial theory does the thesis seem comparatively scattered and lack systematicness and depth. So in order to seek it's unique essence, the thesis is based on the principal-agent theory and combines the application of financial theory.The relationship between owners and operators is a typical kind of agency relation. For the sake of reducing agency costs and inducing operators to act in owners' best interests, the thesis draws the following conclusions by using a standard principal-agent model. Firstly, we should infer operators' action according to their achievement. Secondly, in incentive contract operators should share marketing risks to some extent. Lastly, the incentive mechanism is a signal transmitting system and consists of evaluation system and incentive system.From the view of finance, incentive contract is the delicate equilibriums of income distribution, performance evaluation and risk. The substance of incentive to management is entitling them to participate in enterprise's financial income distribution according to the principle of residual claim well matching residual rights of control. Three ways, which can realize it, are yearly salary system, stock right and stock option. Performance evaluation should utilize Fuzz Comprehensive Evaluation(FCE) with financial and non-financial targets.It is also essential to analyze every incentive pattern for the form of incentive scheme. Every incentive pattern has it's own incentive function. Therefore, we should use three kinds of incentive patterns synthetically. Besides, there are many environmental factors, which will weaken the validity of incentive scheme. Thus creating favorable implemental circumstances benefits to the enforcement of incentive scheme.