The Research About The Effect To The Management Equity Incentive In Manufacturing Companies

With the continuous development of company governance theory and the governance practices,corporate governance should expand the scope.In the modern management theory,the product competition in the market,manager market,net worth,etc should be belong to the theory.Both at home and abroad related research also showed that the product market competition has a very important influence on the internal governance.Based on the theory,this article treats the product market competition as a constraint condition to explore the management equity incentive effect,this article also think,in different product market competition situation,the effects of the management equity incentive of listed companies in China will be different.This article expands the scope of the corporate governance,it bases on the relevant content of the economics of industrial organization to study the effect of the management equity incentive.Firstly,the article describes the background,significance,content and methods of the research.;Secondly,this paper expounds the definition of the management equity incentive and the way of equity incentive;meanwhile,this paper summarizes the domestic and foreign literatures that study the management equity incentive and corporate performance relationship;Then,this paper introduces the three effects:management equity incentive effect,the defense effect and interval effect,and analyses the influence of product market competition management equity incentive effect,and puts forward the relevant hypothesis;Again,according to the theoretical analysis it establishes a multiple linear regression equation;finally,according to the OPE,the product market is divided into highly competitive products market and the low competitive product markets,and this paper will base on the data which is from the SSE and the SZSE to decide research institute.This uses ROA to measure the effect of the management equity incentive,MSR to measure enterprise’s equity incentive.In order to eliminate other factors influence on the results of the study,this article selects the monetary compensation,enterprise growth,the scale of the enterprise,the asset-liability ratio,the enterprise property rights to join into the model,to ensure the accuracy of the results of the study.By SPSS 17.0 to descriptive statistics of relevant variables,it uses multiple regression model to study management equity incentive effect in different product market competition and put forward the proposed hypotheses.Through the regression,the article gains the following results:in the highly competitive products in the market,management equity has incentive effects,Improving the MSR is good to the ROA,it fits the explanation of "the convergence of interests"hypothesis;In low competitive products in the market,management equity has defense effects,Improving the MSR is bad to the ROA,it fits the explanation of "dug in self-controlled" hypothesis.