Equity Incentive, On-the-job Consumption And Enterprise Performance

The study of corporate governance has a long history both at home and abroad, scholars from differentAngle of view, use a variety of theoretical analysis of corporate governance, and are discussed in this paper,at the same time, points out that the formulation of complete contract that signed by shareholders andmangers maybe helpful for saluting the problem of agency. In our country enterprise managers’compensation incentive system, monetary compensation, equity incentive and on-the-job consumption is animportant part of the three. Enterprise managers of monetary compensation and equity incentive is an open,easy to statistics, while on-the-job consumption which is relatively hidden, can only indirectly from theenterprise the management cost, therefore, monetary compensation and equity incentive is often referred toas dominant compensation, on-the-job consumption is often viewed as implicit compensation. Existingliterature studies the monetary compensation and enterprise performance, but has many controversial, thereason for appearing this kind of circumstance is likely to be due to abandon the equity incentive study, andnot as stealth motivation of on-the-job consumption, the studies on the impact of compensation on listedcompanies performance, rarely consider the explicit and implicit pay to the performance of listedcompanies work together. In the view of the above shortcomings, this paper will be introduced on-the-jobconsumption as an important component of implicit compensation as a variable, and discuss equityincentive effects on enterprise performance effect, on-the-job consumption. This article studied the equityincentive, on-the-job consumption’s influence on enterprise performance carries on the empirical research,discovered the presence of on-the-job consumption, equity incentive is how to affect the performance oflisted companies, thus help to equity incentive plan formulation.Based on the academic studies corporate governance status quo, combined with the listed state-ownedenterprises and non-state-owned listed companies in economic, political environment, combed the agencytheory and incentive theory, and the equity incentive and corporate performance, on-the-job consumptionand the relationship between enterprise performance has carried on the literature review. Subsequentlyestablished enterprise performance as the dependent variable, equity incentives, on-the-job consumptionand property as independent variables and the scale of the enterprise, the enterprise scale, asset liabilityratio, equity concentration, the enterprise growth, industry and the control variable research model, and2006-2010in China in Shanghai and Shenzhen stock market a-share listed companies all5283(2888state-owned listed companies and the other2395are non-state-owned listed ones) data as A sample, theapplication of Stata11.0Excel2003and to the data processing, and the empirical test.Finally discovered that in the state-owned listed companies, equity incentive and corporateperformance was not significant, on-the-job consumption is positively related to enterprise performance,equity incentive and the on-the-job consumption has alternative relations; In non-state-owned listedcompanies, the equity incentive and corporate performance are related, equity incentive to executivesincentive effect is obvious, on-the-job consumption is negatively related to the enterprise performance,equity incentive can improve on-the-job consumption’s negative effect on corporate performance.