Research on the Construction of Incentive Mechanism of Firm's Managers Based on Market Signals

This paper regards the market signals of measuring performance of firm's managers as foundation, and accords to the theory of managers participate in firms' residual assignment based on their human capital to Introduce the thoughts that monetary consumption in the position, shielding environment uncertain factors with the comparative performance comparisons, reflecting the market values of human capital with stock price fluctuation, and deciding position consumption coefficient by market evaluation standard to realize monetary consumption in position It puts forward valuable suggestions on perfecting the incentive and restraint mechanism for firms' managers