The Research On Relationships Between Managerial Incentives And Enterprise Value Under Different Property Rights

As a result of modern corporation system,company's owner ships and management rights are segregated,which leads to the principal-agent problem.Under this situation,interests of owner and management may be inconsistent.In order to reduce contradiction caused by the separation of two powers,company should carry out management incentives,such as monetary compensation incentive,equity incentive and on-the-job consumption.Monetary compensation incentive and equity incentive belong to explicit incentive mode,while in-service consumption belongs to implicit incentive mode.With a reasonable incentive model,shareholders expect that management and shareholders could pursue same goals to realize maximization of shareholders' wealth.Scholars at home and abroad have conducted relatively more studies on management incentives and enterprise values,and have formed some research conclusions on them.This paper will adopt empirical analysis to select the data of listed companies in China(from 2015 to 2018)as target companies.What's more,management incentives are divided into three dimensions,monetary compensation incentive,equity incentive and on-the-job consumption by the author for studies of relationships between dimensions and enterprise value.In this article,author examines impacts of three management incentives methods on enterprise value by using regression analysis.The study shows following conclusions:(1)the impact of listed company's manager shareholding ratio is positive;(2)the monetary compensation of listed companies has a positive correlation with the enterprise value;(3)management's on-the-job consumption has a negative impact on the enterprise value.Based on the regression analysis,author takes Shandong Haihua Group as a case for analyzing impact that management incentives have on enterprise values.Through the combination of case study and empirical analysis,the article reaches a more accurate conclusion.To improve the effectiveness of incentives and to have a better management incentive method,it's time for listed companies to establish a not only scientific but also effective performance appraisal system,to pay attention to establishing a long-term and short-term incentive mechanism,and to improve the transparency of management compensation.Also,a market-oriented talents competition mechanism should be established in the state-owned listed company.