Theoretical and Empirical Research on the Chinese Professional Manager Market

Author: Xu Lin
Publisher:
Publish Date: 2006-10-01
Features: Based on theoretical deduction and empirical analysis, this book proposes that the development model of the professional manager market in China should be a synergistic development of both the internal and external manager markets, along with relevant policy recommendations. The author believes that when the external market suffers inefficiencies due to inherent defects, enhancing the overall manager market efficiency through the development of the internal manager market holds greater significance. The institutional supply of the internal manager market is primarily reflected in corporate internal governance models and incentive mechanisms. Empirical analysis shows that equity allocation, operational control rights allocation, internal promotion systems, and profit distribution systems all play significant roles in improving the efficiency of the internal manager market. These endogenous rules among market participants alter their behavioral choices, thereby changing the behavior expectations of each party and the set of actions available to participants, shifting the game equilibrium and reducing the operational costs of the external manager market, ultimately enhancing the efficiency of the entire professional manager market. The institutional supply by the government as a third party should also not be overlooked. The government can effectively promote the efficiency of the professional manager market by guiding and regulating educational and training institutions, improving the legal framework, and fostering information intermediaries.