Abstract: Abstract：Based on the data of management incentives and insurance purchase of A-share manufacturing listed companies from 2010 to 2017, this paper uses Logit model to empirically test the wealth effect and loss aversion effect of three management incentives, namely equity incentives, monetary compensation and on-the-job consumption.The study finds that equity incentive embodies wealth effect in the insurance purchase decision of non-state-owned enterprises, inhibits the insurance purchase intention of enterprises, but has no significant impact on the insurance purchase decision of state-owned enterprises.In-service consumption reflects wealth effect in insurance purchase decision-making of state-owned enterprises, but has no significant impact on non-state-owned enterprises.Monetary remuneration has no significant impact on insurance purchase decisions of different types of enterprises. Therefore, in the new round of income distribution reform of state-owned enterprises, when designing incentive schemes, enterprises should combine incentive and restraint according to the nature of enterprises and incentive methods, so as to prevent enterprises from taking too high risks..

Key words: management incentive, wealth effect ;loss avoidance effect, enterprise insurance purchase