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shang shi gong si gu quan ji li zhong guan li ceng zi li xing wei bo zuo fen xi
Author(s): 
Pages: 135-139
Year: Issue:  12
Journal: Enterprise Economy

Keyword:  large shareholdersequity incentivemanagementself-interest behaviorgame theory;
Abstract: The management of self- interest behavior has become one of the biggest problems influencing the implementation of equity incentive effect. We apply the modern game theory to build a game model between large shareholders and the management,and construct the utility function of the two sides to analyze the determinants on the implementation of large shareholders equity incentive and managerial entrenchment. We find that there is managerial entrenchment in the process of the equity incentive plan. And the influence factors of self- interest behavior include investment opportunities, shareholders on management regulation, pay- performance sensitivity and ownership by the management. Besides, the preference of large shareholders’equity incentive is affected by the incentive effects and welfare effects of the equity incentive plan. The conclusion of the study has played a positive role in avoiding self- interest behavior when carrying out equity incentive.
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