Manager Perks And Enterprise Operating Performance Under Equity Incentive Perspective

The management are the company’s key decision makers and managers, at the core of value creation in the company. Management compensation issues have been a major concern. Manager perk has an important role In our country system of management compensation. As manager perk is attributable to administrative expenses in general, with a certain degree of secrecy. So we regard it as hidden salary. As the modern enterprise ownership and operational control are separated, both business owners and managers are often not consistent with the interests of the target According to the deputation theory. Operators will look for any opportunity to get more benefits from the company, in order to maximize their own interests. Management are the company operator who have an incentive to reap benefits from the company. Manager perk provides a bridge from selfish motives converted into behavior.However, excessive manager perk is serving a high agency costs, will damage the interests of enterprises.The equity incentive is also an important part of the management compensation system. Equity incentives is about how business owners and managers to share a contract operating results. The equity incentive is regarded as dominant salary. In the1950s to resolve the agency issue, equity incentive came into being. Equity incentive aims to grant a certain percentage of shares of the operators, to achieve personal interests and business interests closely linked. So, from the perspective of the management equity incentive inquiry to solve manager perk, and promote the sustainable and healthy development of the listed companies. It is worth thinking and research.Based on the above background, This paper selects six-year period of2008-2013in Shanghai and Shenzhen A-share listed companies as samples empirical research. This paper includes the following six parts:The first part is an introduction. Firstly, this part points out the research background and significance of the subject. Secondly, this part shows the structure and possible innovations of this article. The second part introduces the domestic and overseas papers on manager perks, equity incentive and property rights, and summarizes the existing studies. Then, this part evaluates the existing studies.The third part is the related theories of manager perks and equity incentive. In this part, author firstly defines the related concepts. Then, this part analyzes the three basic theories:the deputation theory, motivator hygiene theory and the theory of optimal contract. Finally, combining the background of our country, presents empirical research hypothesis.The fourth part is the research design for empirical analysis. Firstly, explains the sample selection method and data sources. Secondly, selects the proxy variables. Lastly, presents the models for empirical research.The fifth part is empirical testing and analysis. First of all, author gives the descriptive statistics of variables involved in the models, then, tests and analyzes the effect of manager perks on enterprise operating performance under Equity Incentive Perspective. And finally, robustness tests conducted to provide a more fully empirical evidence for the conclusions.The sixth part is the conclusions and recommendations. Firstly, author presents the conclusions of this research; secondly, author makes some recommendations against the problems found by empirical test. Thirdly, author makes the limitation of the study, and discusses future research.Based on the digestion and absorption of the relevant literature, in this paper expects to be some innovation and contribution in the following areas.Firstly, from the perspective of topic, researching dominant salary and hidden salary affect on the enterprise performance is still rare. Secondly, this paper group different nature of property rights. The research can guide the different nature of the business property using different pay incentives. Thirdly, this paper uses two measures of variables on manager perk. The two measures of variables not only enrich the manager metrics, but also provide more solid evidence.