The Research On The Influence Of Financial Motivation Of Listed Company On The Value Creation Ability

While the corporate governance is improved, in order to make the company management make decisions in line with the interests of the shareholders, one of the important means is to provide appropriate and reasonable financial motivation for the management, because a reasonable incentive system can encourage the enterprise executives to work hard and improve the performance and company value. On January4,2006, China Securities Regulatory Commission (CSRC) issued the Measures on Administration of Equity Incentive of Listed Companies (Trial) and from then on, more and more listed companies implement the equity incentive in the management. Value creation ability, as a basic standard for measuring the value creation of a listed company, reflects whether the capital market and the same industry where it is have the micro-foundation and fundamental force for a healthy development. The value creation ability can affect the profitability of the companies and the evaluation of capital market on business performance and development prospect of the companies, which will then affect the financial incentive level of the list companies’ management layer.Combined with the related research on the influence of financial motivation on value creation ability of listed companies at home and abroad, with principal-agent theory, human capital theory, motivation-hygiene theory and hierarchy of needs theory as a theoretical support, A-shares of listed companies in Shanghai and Shenzhen as the research samples, the highest amount of the average of top three management total compensation, revised MVA growth rate as an entry point, in-depth analyzes the current situation of financial motivation and value creation ability of listed companies.Proper choices of financial motivation variables-the highest amount of the average of top three management total compensation and their shareholding ratio, value creation ability of listed company variable-revised MVA growth rate, and control variables-scale, asset-liability ratio, and then uses multiple linear regression analysis model, empirical analyzes the issue how the management’s financial motivation affects the value creation ability of listed companies. research found:the implementation of comprehensive compensation motivation and equity motivation has a larger influence than the only implementation of compensation motivation on the value creation ability of listed companies.Based on the result of empirical analysis, combined with the theoretical analysis, this paper puts forward relevant suggestions on how to improve the financial motivation so as to promote the value creation ability of listed companies and make the enterprises develop sustainably:at the micro-level, optimizes the term structure of financial motivation, improves non-financial motivation, perfect the governance structure and internal supervisory organ of listed companies; at the macro-level, cultivate stable and effective capital market, improve the relevant laws, regulations and polices and cultivate stable and effective capital market.