Further research finds that the improper design of managerial incentives mechanism induces the improper selection of diversification investment policy.

Using panel data analysis methods,this paper selects samples of 99 listed private companies of Shanghai and Shenzhen stock markets in 2004 to 2007,and comprehensively analyses the impact of corporate governance on corporate performance in Chinese private Listed enterprises,from the areas of ownership structure,board of directors and senior management incentive.

The excellent top executives have become the target of fierce rivalry among firms, and the problem of top executive incentive has become the focus of theorists and entrepreneurs.

Relationship between senior management incentive and corporate performance: an empirical analysis on listed companies of B-share from Shanghai Stock Exchange;

The article tests the relationship between management incentive and company growth using the descriptive method.

Faced with the reality of inefficient internal capital market,ill-controlled management,imperf ect governance structure,simplified management incentive forms,and the to-be-improved theoretical system for internal capital market operation,this paper analyzes the influencing mechanism of the management incentives on the allocation efficiency of the internal capital market.

Its main idea is to maximize the shareholder value by managerial incentives and large shareholder control.

There are two views during the literature that study capital structure and managerial incentives.