The Research About The Influence Of Market For Controlling Right To The Incentive Mechanism

One of the most important characters of the modern enterprise system is the abruption of ownership and mastery. And the abruption always comes with the establishing of mandate relationship. Because of the different goals between the client and target man, the asymmetry information, there are problems exist in procuratorial relationship, such as indirect selecting and moral risk. In order to reduce the lost caused by these problems, market for corporate control must be developed. It plays key role in the management of enterprise. It also helps to improve the structure of company. Managers use their power to have more payment, which has weakened the incentive system. They also take reverse merger to protect their benefits, which has also weakened the function of market for corporate control. Controlling the market dealing can change the structure of managing level, cripple their power, and then ameliorate the power of controlling.To solve the problems in enterprises, besides using the controlling power allocating market, incentive system for managers also needs to be made use of. The design of incentive system can be fit with the benefits of shareholders and managers. Unlike the old remuneration system which is mainly about the influence of cash and benefits on achievement, the influence of stock-based incentive program has become more and more important.By studying the results from both domestic and foreign companies, investigating internal management system of corporations, especially the incentive system, enterprises can build model, analyze the compatibility of incentive system and data from the inside of company. All above are to advance the effectiveness of the market for corporate control, create a better evaluation system and raise the business efficiency.