A Study On The Impact Of Management Incentives On The Social Responsibility Of Private Family Enterprises

With the continuous development of China's economy,private family enterprises have occupied a large proportion of China's market economy.The dynamic of private economy reflects the dynamic of China's reform.In the future,the proportion of private economy will continue to rise,contributing to the rise of China's great power and the great rejuvenation of the Chinese nation.More than 80% of private enterprises are family enterprises.Family enterprises are the most flexible economic entities because they can adapt to different economic characteristics with their own advantages.However,as an active and unique part of China's economic component,its commitment to social responsibility is a widespread concern of all stakeholders.Different from state-owned enterprises,private family enterprises are willing to take social responsibility out of their own free will,and their degree of social responsibility is affected by many factors.As an important measure to reduce agency cost,management incentive is also an important practice of equity balance,which directly or indirectly has an incentive effect on executives,thus bearing corporate social responsibility This paper combines the management incentive of private family business with the situation of corporate social responsibility,and makes an empirical study on the correlation between the two.Based on the perspective of enterprise life cycle,this paper selects the sample data of private family enterprises listed in 2014-2018 as panel data to screen and process the samples of enterprises in four stages of development,and based on the characteristics of private family enterprises listed in China,principal-agent theory,social responsibility related literature research,puts forward the hypothesis;select high Management compensation incentive,executive equity incentive as explanatory variables,and the contribution value of social responsibility per share as explanatory variables,respectively,establish models for samples in each life cycle stage,conduct linear regression,and draw corresponding conclusions.After empirical research,this paper draws the following conclusions: from the start-up period to the growth period and then to the mature period,there is a significant positive correlation between the compensation incentive and equityincentive in the management incentive of private family enterprises and the corporate social responsibility,but the correlation between the management incentive and the corporate social responsibility is different in each stage.In the recession period,the compensation incentive of family enterprises is still related to the corporate social responsibility However,there is no significant correlation between equity incentive and corporate social responsibility.On this basis,this paper puts forward relevant suggestions from family business,stakeholders and government.