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

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.