Research On Management Incentive And Enterprise Growth

Since China GEM established on 30 October,2009, there has 492 companies listed on the GEM market as of December 31,2015; whether they have growth will directly determine the the sustainable development of the company, one of the company’s governance structure will largely affect its growth, and Management Incentives are an important part of the governance structure. So for the companies which have listed on the GEM, to research the relationship between the Management Incentives and growth is extremely necessary:on the one hand may provide a new perspective for the establishment of management incentive mechanism; On the other hand, through empirical research, we can provide a more solid data to support management incentive theory, and then use the incentives to improve the GEM company’s growth, prompting its growth.Through Literature Search,we found that:a relatively large number of scholars study the relationship between managers incentives and corporate performance, and the selected sample data focused on the motherboard and small plates; This paper chooses companies that listed on China GEM before December 31,2012 as samples, selects 2012-2013 panel data, uses multiple linear regression model, to analyze the relationship between management incentives and growth were analyzed.About the measure of growth variables, this paper selects 10 indicators in five areas,include solvency, operational capabilities, profitability, development, innovation, for evaluating the growth of companies listed on GEM, so as to avoid a single financial indicators. In the regression analysis of management compensation incentive,in accordance with the state of our eastern and western division standard, the sample company is divided into three parts of the eastern region, the central region, the western region, according to corresponding group to do data analysis respectively; In the regression analysis of management equity incentive, is divided into equity incentive groups and non-equity incentive group, then grouping research.The empirical results show that there is a significant positive correlation between the company’s growth and management of the annual remuneration, and these are set up in three constituencies; Company growth stake significant positive correlation with the Managerial Ownership Incentives, but significant level is different in different groups; Simultaneous regression analysis showed that corporate size, financial leverage, and other factors also have some influence on the company’s growth.Through this study, can help GEM listed company’s stakeholders find and identify the deficiency existing in the internal governance, and according to the results of the theoretical foundation and empirical analysis, can put forward some feasible suggestions, such as perfecting related laws and regulations, change management incentive performance evaluation mechanism, optimizing the company’s internal governance structure, improve the management appropriate annual compensation, reasonable allocation management shareholding, etc., and thus promote managers to create the good governance environment, help investors looking for investment opportunities, provide some reference for the government to establish a good management mode.