The Executive Power, Equity Incentive And Investment Efficiency

Executive power theory says that salary incentive can not alleviate the agency problem,and it has become a problem of the agency,as a reslut,the management of incentive is not effective.In my opinion,place the salary incentive under the analysis framework of executive power may ignore the interaction between the equity incentive and executive power.Although others has studied the relationship between the equity incentive and corporate investment efficiency.But the conclusion of the scholars are not unified,and few scholars pay attention to the role of equity incentive in the executive power and the efficiency of investment.In this paper,we based on the principal-agent theory to re-examine the effect of equity incentive.The article explores the comprehensive power of the executive's efficiency on enterprises investment efficiency at the same time,focus on the implementation of equity incentive role in the relationship between them.Based on equity division reform,this paper based on the principal-agent theory and asymmetry information theory,use the data 2010-2015 of Shanghai and Shenzhen a-share listed companies as samples,to tested the equity incentive system role in alleviating the agency problems.By studying the relationship between the executive power and the efficiency of investment,the relationship between the equity incentive and the efficiency of investment and the executive power,the relationship between the equity incentive and the efficiency of investment,mainly analysis the equity incentive efficiency in alleviating agency problems,make up for the theory of executive power of the study of salary incentive.The empirical results show that the executive power is one of the important factors that influence efficiency of corporate investment,equity incentive in alleviating the problem of agency for the owner and agent that played a important role:(1)The executive power and significantly positively related to the efficiency of investment of the enterprise.The greater the executive power,the greater the enterprise excessive investment behavior;The greater the executive power,the greater the enterprise of the more serious lack of investment behavior.(2)The implementation of equity incentive restrained the inefficient investment behavior of the enterprise to a certain extent.The regression results show that the implementation of equity incentive in alleviating has a notable amendment effect on enterprise investment.(3)The equity incentive between the executive power and the efficiency of investment has played a important role.The implementation of equity incentive,which can restrained the excessive investment behavior caused by executive power,and can alleviate inadequate investment behavior caused by executive power.These results,to a certain extent,for the domestic equity incentive effect to provide the corresponding evidence,innovation and advance of compensation management system in China to a certain degree.According to the result of regression analysis,the article summarizes the research content,and put forward to from the perfection of the mechanism of executive power,specific policy proposals to improve the management ability of compensation etc so as to reference for the relevant parties.