The Study On The Relationship Among Equity Allocation,Capital Enterprise Moral Hazard And Corporate Performance

With the establishment of modern enterprise system and the continuous improvement of the structure of property rights, ownership and control of enterprises are separated, business owners(shareholders) by hiring managers(executives) to carry out the operation and management of enterprises,but because the difference between shareholders and executives' interests and the asymmetry of information, senior executives will hide the actual enterprise information in the course of the business, don't work hard such moral risk behavior; and the shareholders will reduce senior executives' pay deliberately or reverse investment choice such moral risk behavior. Therefore, the moral hazard behavior of shareholders and senior executives will cause the enterprise moral risk, that is the enterprise moral risk exist in the aspects of shareholders and senior executives. enterprise moral risk not only affects the revenue of shareholders and executives, but also restricts the finance and long-term development of enterprises. Previous studies on enterprise moral risk only pay attention to the executive level, pay little attention to the shareholder level, there is no shareholders and executives of the equity allocation into them.Therefore, this paper attempts to start from the aspects of shareholders and executives, to study the relationship between equity allocation, enterprise moral risk and enterprise performance, first studies the equity allocation effect on enterprise moral risk, then through empirical analysis of the relationship between the three, and draw a conclusion.Based on theoretical analysis and research on the basis of review, this paper make in-depth analysis on the content. Research methods involve the analysis methods and measurement model of mathematical model.The relevant theoretical basis of principal-agent theory,asymmetric information theory and contract theory,based on these theories, mainly study the two problems: one is the study on the effect of equity allocation on the moral hazard of shareholder aspect and executive aspect by mathematical model;the other is the study of equity allocation whether can govern enterprise moral risk from the aspects of shareholders and executives,causes the enterprise to improve performance.This paper take the listing Corporation as a sample, make an empirical test on the correlation of equity allocation, enterprise moral risk and corporate performance.The empirical results show that:(1)The high equity shareholders and executives will cause moral risk of enterprises;(2)The enterprise moral risk will lead to lower corporate performance;(3)The high equity shareholders and executives will make the enterprise performance decrease;(4)The enterprise moral risk between equity allocation and corporate performance play a part of the intermediary role. Therefore, equity allocation can make shareholders and executives have the same goal, promote mutual cooperation, and govern enterprise moral risk to improve enterprise performance from the aspect of shareholders and executives.At the end of this paper summarize the paper, put forward relevant suggestions,point out the deficiencies and the future research direction.