Research On The Equity Incentive Of Management Of Listed Manufacturing Companies In China

With the separation of ownership and management in modern enterprisemanagement system,management will play an important role in theenterprise,although operators do not have an enterprise,they hold much theinformation of the enterprise which owners do not know in the process of productionand operations,and they also stand at the forefront of enterprise decision-making,asshareholders do not participate in the daily business decisions,it leads to the existenceof information asymmetry between the principal problem with the agent who is likelyto bear the principal agents of "moral hazard".Therefore,how to supervise themanagement and let them consistent with the interests of shareholders,it is a majorproblem that enterprises should face.In order to make the company’s value maximize,reduce the risk of management agency and agency costs,improve the company’soperating performance,it is needed that the management’s daily operating decisionsshould be consistent in the interests with the shareholders.Equity incentivemechanism provides a new way to solve this problem,this mechanism will give someresidual claims to the management,so the interests of management will be integratedinto to the shareholders’ interests,and the interests of management will be tied to thefate of the company’s development,it can establish the positive correlationrelationship with the interests of management and the maximization of enterprisevalue,it also can reduce the agency costs and improve corporate’s performance,andimprove enterprise management mechanism at last.In order to make the internal governance structure of listed companies perfectand improve enterprise performance,our country gradually introduced the equityincentive system from fremdness in the latter of the1990s.With the introduction ofequity incentives,more and more of our scholars appealed to it and began to researchthe equity incentive.As various reasons equity incentive has not been large-scaleimplementation in the early,even if there are some companies have implementedit,but the results of the implementation was not significant,the incentive mechanismcould not develop its incentive effect.With the completion of the share reform,and the "Equity Incentive implementation of management practices of listed companies" waspublished and implemented in2006, it provides a broad space for the implementationof equity incentive.In the current context of many listed companies which hasimplemented equity incentive mechanism,we continue to study the effect of theimplementation of equity incentive from the manufacturing industry listingcorporation,it has important practical significance.This paper describes the research’s background,methods,significance and soon;discusses the domestic status of research on equity incentive and equity incentivetheoretical support;investigates the implementation of equity incentive from themanufacturing industry listing corporation on the current status;analyzes mainproblems implementation of equity incentive existing in the process.As we considerthe data accessibility and equity incentives time lag,we select the data from2008to2010as the sample data to research the implementation of equity incentive.We usethe empirical analysis to analyze the relevant factors which affect the level ofmanagement equity incentive,the relationship between the management of theimplementation of equity incentive reveal and corporate performance is theemphasis.The conclusion is that the implementation of the management equityincentive can improve business performance,but the effect is not significant,in orderto make the implementation of equity incentive perfect,relevant suggestions will beput forward in the last.