Effective Research On Projects Of Top Management Compensation In Listed Companies

Executive compensation lie in principalagent theory. Most companies take themeasure of “separation of two rights” to solve the shortage that the owners being managerssimultaneously. Consequently different aims to benefit between owners and managers damagecompany’s total assets, the things make us have to consider manager their own needs again.Incentive system generate from this process.During several decades, the effective level of incentive system is always validated domesticand overseas. Although single literature doubt this system, but supporters are must be in themajority on the whole. Right now, there’re many phenomenon that a lots of managers sellequities and get cashes in domestic market. Because of this, we have to survey incentive systemand its operational effectiveness in listed company.From this angle, the article investigate the effectivenesses of short term and long termmotivation system and analyze influences of every factors by using empirical evidences fromlisted company. We strive to formulate more effective institutional framework and system insidethe company.The article has seven sections with following opinions. Firstly, short-term and long-termemolument among managers and company performance have remarkable positive relationship,the incentive system can effective utilized. Secondly, ownership concentration can promote firmvaluation, the equity ratio of the state-owned shareholders has no action on firm valuation,corporate and outstanding shares are able to encourage company performance. It can be seen thatdifferent parts of stock rights play different rule. The last, there’s positive effection between firmsize and valuation.