Equity Structure,Manager Incentive And Company's Growth

Good corporate governance not only determines the company's operating efficiency,but also determines whether the company can achieve well development and growth.Compared with European and American countries,China's companies currently have deficiencies in both the external and internal governance environments,so that there are serious deficiencies in shareholder governance and managerial governance.The problem of shareholder governance is mainly appears in the existence of many family companies in listed companies,the phenomenon of "one share is dominant" is very common,which leads to the problem of the transfer of interests such as embezzlement and theft of company assets by large shareholders.The problem of managerial governance is mainly appears in the phenomenon of abuse of corporate wealth to build a "corporate empire" at the managerial level,by manipulating company information to hoodwink and deceive shareholders,and the irrational behavior of managers fails to form effective constraints.At the same time,many companies have plagiarism,insufficient investment in research,and they are enthusiastic about investing in the stock market and real estate to earn income,and generally lack entrepreneurship.As an emerging country undergoing economic transformation,the establishment of a viable corporate governance system has become an important need for people in all sectors of society and an important goal for policy formulation.In view of this,it is of great significance to study the relationship between equity structure,manager incentives and company growth from the perspective of corporate governance,and to objectively analyze the characteristics of equity structure and manager incentive methods on the company's growth.First,the equity structure are analyzed from two aspects of concentration ratio of shares and balance ratio of shares,and it is considered that the two are related to the company's growth through ways that affect the behavior of shareholders and managers.Among them,the analysis focuses on the three behaviors of innovation,investment and risk-taking of managers.Based on the analysis of the effect of equity concentration and balance mechanism of equity on the company's growth,the panel data regression model of the GEM listed companies from 2014 to 2018 was used to construct an empirical test for the relationship between concentration ratio of shares,balance mechanism of equity and company's growth.The results show that,on the one hand,there is a positive correlation between equity concentration and company growth,indicating that large shareholders play an active role in corporate governance and can effectively constrain and control the behavior of managers;on the other hand,balance mechanism of equity and company's growth are significantly positive relevant,indicating that other major shareholders can check and balance the actions of major shareholders,and also assist the major shareholders in supervising the behavior of managers.Secondly,the manager's incentive method is researched from the aspects of monetary compensation and equity incentive,and it is empirically tested by constructing a panel data model.The results show that:on the one hand,monetary compensation is significantly positively related to the company's growth,and it is believed that monetary compensation is related to the company's growth by inhibiting the irrational behavior of the management and motivating them to work hard;on the other hand,it has a significant positive effect,and its "golden handcuffs" function is obvious,which can better bind the interests of the manager and the companyFinally,innovatively introduce entrepreneurship on the basis of classic corporate governance theory.On the one hand,entrepreneurship is inevitably affected by corporate governance,and corporate governance will have both restraining and stimulating effects;on the other hand,entrepreneurship will affect the company's growth,which is an indispensable foundation in the development of the company Elements.Therefore,equity structure,manager incentives and company growth are linked through entrepreneurship.The empirical part constructs a mediation effect test model to verify the mediation effect of entrepreneurship,and the results show that the mediation effect of entrepreneurship is significant.