The Relationship between Management Incentives and Company's Growth: An Empirical Research on the Chine se Listed Real Estate Companies

As the decision maker of a company, management plays a crucial role in the enterprise's growth. This paper studies the relationship between management incentives and the growth of listed real estate companies by using the empirical analysis method. Above all, it selects the listed real estate companies from 2011 to 2015 in Shanghai and Shenzhen stock exchange. Furthermore, it uses principal component analysis to build the evaluation system of the growth of the companies consisting of nine financial indicators. Finally, controlling the factors such as the size of the companies and the state-owned shares ratio, it explains the relationship between management incentives and the growth of companies by using descriptive statistics and multiple regression analysis in which independent variable is the growth and the dependent variables are annual per capital income of management, shareholding ratio, paid staff ratio, holding stock proportion. This paper aims at improving the management incentive policies of the listed real estate companies and providing suggestions for promoting the enterprise development.