We analyze the managerial incentive effect of three financial contracts through an experiment.We think that financial contracts can exert two categories of incentive effects including extrinsic effect,which is embodied through cash flow property,and intrinsic effect which origins from their control rights property. Based on this,we analyze empirically the differences in managerial incentive effects among three kinds of typi- cal financial contracts and show that,the extrinsic effect of equity co...