Research on the relation among management power, stock incentives and financial performances of military industry listed companies

With consideration of governance characteristics of Chinese military industry listed companies, the influencing factors and forming mechanism of stock incentive effects are analyzed. From perspective of management power, the conflict between the managerial power and the control power of strong shareholder and the conflict between the managerial power and the stock incentive, which weaken the positive effect of stock incentive on financial performance, are revealed. The results show that the stock incentive is not suitable for those military industrial listed companies with excessive managerial power.