A Study On The Managerial Incentive Mechanism Of Listed Agircultural Companies In China

Agriculture is the basic industry related to people’s livelihood, and the listedagricultural companies are the advanced representatives of the agricultural companies inChina. They are very important to the development of the agricultural industry in the future.In recent years, the investment for the agricultural companies has been increasing, thebusiness environment has been improving and the development space has been expandingas well. However, the Chinese listed agricultural companies are still the vulnerable groups.There are still big gaps in the scales, economic strength, the influence to the regionaleconomy between the listed agricultural companies and other companies. The humanelement is one of the most important factors for the development of the listed agriculturalcompanies. How to play human’s subjective initiative, arouse the enthusiasm of theoperators, improve their viability, and optimize the managerial incentive mechanisms is ofgreat importance to change the current situation in the listed agricultural companies. Thus,the study on managerial incentive mechanisms for the Chinese agriculture listed companiesis of great theoretical and practical value.The paper learns from the research results of the local and oversea research. The studyobjects are collected from Shanghai stock exchange and Shenzhen stock exchange.34listed agricultural companies were selected from the study objects, while description andcorresponding analysis were made by SPSS16.0.By researching and analyzing, we found that salary motivation is little in common, thegap in the industry is big, and salary motivation is related to the unbalanced local economicdevelopment and the educational background; stock-based motivation covers little,regional difference is big, and the stockholding is concentrated; Besides, we also found, themanaging performance doesn’t have relationship with the salary motivation andstock-based motivation. Moreover, the research showed the main problems of the incentivemechanisms in the agricultural listed companies are: salary system is not reasonable,long-term motivation is not enough; governing structure is not appropriate, managerialselection mechanisms is not completed, some managers are lack of a sense of responsibility,the environment of outside management is not perfect, and dependence has formed by thegovernment’s subsidy.Thus, the author suggests some measures for the managerial incentive mechanisms inthe listed agricultural companies: First, using the compound incentive measures;controlling the key factors in motivation and using the new methods to the managers are included. Second, a model of the dynamic motivation for managers is proposed, themanagement should include the overall process from before taking up the job, on-the-jobto resignation.It is the innovation spot of this paper. Third, the companies’ internal andexternal environment should be improved. What’s more, society should also join in theestablishment of the structure of incentive mechanisms, which is also the innovation spotof this paper. Last but not least, the author submits questions that we should pay attentionto in the future.