A study on manager incentive effect based on principal-agent relationship

Abstract

Based on existing researches on incentive measures of listed companies, this paper explains the significance of incentive plans for China's listed companies and demonstrates the incentive compensation model as a mature and widely used measure in China to create corporate value. In the empirical analysis, it's found that the proportion of managerial ownership in China is low, indicating that the equity incentive isn't the first choice for listed companies in China. The results of this analysis provide main reference for listed companies in future with equity incentive plans.