• Login
  • Register
  • Search

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

Xipu Liu

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.

Keywords


Executive Compensation; Equity Incentive; Corporate Performance

Full Text:

PDF

References


Lin, DP., Su, DW., Equity Incentive and Corporate Performance-A New Study Based on Earnings Management.Financial Research. 2011; 9:162-177.

Liu, SW., Wan, DY., Executive Compensation and Corporate Performance:An Empirical Comparative Study of State-Owned and Non-State-Owned Listed Companies.China Soft Science.2013;2:90-101.

Luo, T., He, Y., Research on the Relationship between Equity Incentive and Company Performance-from the perspective of earnings management on corporate performance modification. Journal of Hebei University of Economics and Business (Comprehensive Edition). 2017; 17(3).

Wang R., Long, ZW., Statistical Analysis of Factors Affecting Company Value by Equity Incentive.Modern Finance and Economics:Journal of Tianjin University of Finance and Economics. 2011; 2:85-91.

Xiao SF., Shi, Q., Wang, T., et al.Choice Preference of Equity Incentive Methods in Shanghai Companies-Based on the Perspective of Incentive Objects.Accounting Research. 2016; 6:55-62.

Lim, DSK. The drivers of international corporate entrepreneurship: CEO incentive and CEO monitoring mechanisms. Journal of world business. 2015; 50(4):742.




DOI: http://dx.doi.org/10.18686/mmf.v6i2.4263

Refbacks