Research On Executive Incentive Mechanism Of State - Owned Listed Companies In China

The state-owned com pany is drawing more and m ore attention from the supervisors, theory and the practice. Th e efficiency of the state-owned com pany incentive pay has a huge influence on the r unning deficiency of the enterprise. Under the existing environment, it’s becoming more and more important how to incent the executives, what the better incentive is and what factors should be considered, and the incentive efficiency compared with the private companies.The main content of this paper is about the system and t he efficiency of the executive incentive of the state-owned listed company, which is divided into six parts. The first part is about the study background and the value of it, also concluded th e papers of relevant studies. The second part analyzes the incentiv e system of current state-owned listed companies, looks back the incentive system of state-owned listed companies, and the problems of the current incentive system. The fourth part studies the validity of the state-owned companies by analyzing the cases. The fifth part tes ts the validity of the state-owned company in centive pay by analyzing a large sample of data. The result turns out to find the state-owned company incentive pay has a good validity, and it’s quite sensitive. But there is a probability that the executive can decide their own salary because of their au thority, also there are influences from the external environment, the shareholders and the balance of it, which can be im proved. The last part is the conclusion and the suggestion toward the problems.The main significance of this study is to find the problem of the incentive pay by comparing the executiv e incentive pay of different property right listed com pany, linking the salary to the p erformance, not only considering the short-term performance but also the future influence. Meanwhile, the incentive pay should adjust along with the developing of the market and the com pany’s internal control as well as the external control. Only to adapt to the system environment can the incentive pay be more efficient, in order to im prove the governm ent function of the government-owned enterprise, and to im prove the shareholders balance system according to different state-owned company.