Research on the Relationship Between Executive Compensation, Equity Incentive and Corporate Performance —— Evidence from China

Abstract

This study selects the Chinese listed companies,which have already implemented equity incentive in Shanghai and Shenzhen stock markets from 2016 to 2018,as data basement and then proceeds an empirical research on the relationship between executive compensation,equity incentive and corporate performance to test the application of top-management monetary salary incentive and equity incentive mechanism in listed firms.The final outcome shows that there existing a positive correlation between the executive remuneration,equity incentive and the company's performance,and also,there depicts an "interval effect" between the strength of equity incentive and the company's achievement.These findings,to a certain extent,are helpful to correctly grasp the development of corporate governance in China and provide empirical basis for the improvement of compensation incentive mechanism.