A Study on the Effect of Executive Incentives on Corporate Performance of Chinese Listed Companies
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v5i5.2851
Abstract
Based on existing theories, this paper proposes the hypothesis of the effect of executive incentives on corporate performance. The financial data of Chinese A-share listed companies from 2013 to 2023 are taken as samples, and empirical analysis is conducted by constructing a regression model. The results show that (1) there is a significant positive relationship between executive compensation incentives and corporate performance; (2) executive equity incentives also show a significant positive relationship with corporate performance; and (3) whether it is compensation incentives or equity incentives, the positive effect of executive incentives on corporate performance is more pronounced in non-state-owned enterprises compared to state-owned enterprises.
Keywords
executive incentives, corporate performance, listed companies in china
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[3]Jensen, A. R., & Roberts, M. T. (2024). The role of stock ownership in executive compensation and its impact on corporate performance: A study of the global market. Global Finance Journal, 56(1), 77-96.
[4]JINYE Zhu. Research on the relationship between equity incentives, corporate innovation and corporate financial performance [D]. Nanchang: Jiangxi Normal University, 2020.
[5]Zhao, L., & Wang, H. (2023). The differential impact of executive compensation on firm performance: Evidence from state-owned and private enterprises in China. China Economic Review, 72, 101347.
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