Managerial Ability And Abnormal Perks

As the separation of management and ownership and the establishment of the modern corporation system,managers are directly responsible for the management of the enterprises.It will affect the cognition of top management team(TMT)on the uncertainty of the internal and external environment of the enterprise such as the gender,age,family background,education experience and other physiological and social attributes,values and business concept and other cognitive attributes and the team heterogeneity of top management team.Then TMT's behavior decisions are affected and different outputs and efficiency are made.These different attributes determine that managerial abilities are different,and the influences of TMT with different abilities on the business decisions and economic consequences of the enterprises are also different.As one of the economic consequences of the management of the enterprises,the problem of abnormal perks has been increasingly serious in recent years.The phenomenon of extravagant perks of listed enterprises has been exposed frequently,which requires regulations urgently.What is the effect of TMT with different managerial abilities on abnormal perks? What are the specific composition and characteristics of perquisites in stated-owned enterprises(SOE)and non-stated-owned enterprises(NSOE)in China,and how different are the mechanisms of the effects of different managerial abilities in enterprises with different property rights on abnormal perks? Especially in the context of compensation regulation,what is the mechanism of the influence of managerial abilities on abnormal perks in state-owned enterprises? The paper attempts to answer these questions.The paper combines the methods of archived research and empirical research.Firstly the paper reviews the literatures related on managerial ability and abnormal perks and generalizes the mechanism of the influences of managerial ability on abnormal perks.According to the demands of daily management,supplement to compensation,self-interest of managers,abnormal perks are stripped from overall perks and then abnormal perks are divided into the two parts of self-interest perks and compensative perks.Next,based on upper echelon theory and information asymmetry theory and principal-agent theory,the paper analyzes the relationship between managerial ability and self-interested perks and compensative perks from the theoretical and empirical perspectives.Conclusions: the higher managerial ability is,the lower self-interested perks will be,and the higher compensative perks will be.When other conditions are certain,compared with NSOE,the state-owned property rights will weaken the negative correlation between managerial ability and selfinterested perks and the positive correlation between managerial ability and compensative perks.Therefore,the paper gives the suggestions.1.Strengthen the construction of the market for managers and improve the level of marketization.Meanwhile,reputation mechanism should be used to regulate the behaviors of the management and reduce the self-interest motivation while promoting their diligent work.2.Bring the management compensation contract to completion,improve the granularity of the management compensation contract,and take compensation perks into the contract standard regulation to reduce the gray area that is out of the control of the enterprise.3.For state-owned enterprises,we should strictly implement the basic idea of classified reform of state-owned enterprises,determine the corresponding compensation and promotion mechanisms of enterprise management according to the target positioning of different types of industrial enterprises to close regulatory loopholes,and to achieve the balance between supervision and incentive.The main innovation of the paper is to study the influence of managerial perks on abnormal perks,especially the influence of managerial ability on self-interest perks and compensative perks.At the same time,the paper introduces the nature of property rights,and studies the different influence mechanism of managerial ability on abnormal perks in state-owned enterprises and non-state-owned enterprises.