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The Impact Of Equity Incentive Executive Compensation On Corporate Performance, Bing Ruan

Dissertations and Theses Collection (Open Access)

The management rights and ownership of modern enterprises are often separated. Enterprise owners, i.e. shareholders, pursue the maximization of enterprise profits, while enterprise managers pursue the maximization of their own interests. This leads to conflicts between the two parties in the process of pursuing the maximization of their respective interests. To address the inconsistency of interests in principal-agent relationships, effective corporate governance mechanisms are needed. The equity incentive system is one of the important means for modern enterprises to implement effective human capital management. Its purpose is to bind the personal interests of management with the interests of the enterprise, …