Welcome to Francis Academic Press

Academic Journal of Engineering and Technology Science, 2019, 2(3); doi: 10.25236/AJETS.020055.

Research on the Influence of Executive Compensation Incentive on Company Growth

Author(s)

Lin Chen

Corresponding Author:
Lin Chen
Affiliation(s)

School of Management, Shanghai University, Shanghai 200444, China

Abstract

Based on the panel data of GEM listed companies from 2014 to 2016, this paper studies the relationship between different executive compensation incentive methods and the growth of companies, and discusses how different executive incentive methods affect the growth of innovative enterprises. The results show that there is a significant positive correlation between executive compensation incentive, equity incentive and the growth of innovative enterprises. However, the compensation gap has no significant impact on the growth of innovative enterprises. It can be seen that compensation incentive and equity incentive can positively promote the growth of innovative enterprises, but the relationship between compensation gap and the growth of innovative enterprises has not been effectively verified.

Keywords

executive compensation incentive, enterprise growth, compensation incentive, equity incentive

Cite This Paper

Lin Chen. Research on the Influence of Executive Compensation Incentive on Company Growth. Academic Journal of Engineering and Technology Science (2019) Vol. 2 Issue 3: 53-65. https://doi.org/10.25236/AJETS.020055.

References

[1] Coles J L, Daniel N D. Managerial In centives and Risk taking [J] Journal of Financial Economics, 2006, 79 (2): 431-469
[2] XUEY.F. Make or Buy New Technology: The Role of CEO Compensation Contract in A Firm’s Route to Innovation [J]. Review of Accounting Studies, 2007 (4)
[3] Michael J. Dowling, Jeffrey E. McGee. Business and Technology Strategies and New Venture Performance: A Study of the Telecommunications Equipment Industry [J]. Management Science, 1994, 40 (12).
[4] Lu Rui. Enterprise Innovation Investment and Executive Compensation Performance Sensitivity [j]. Accounting Research, 2014 (10)
[5] Wu Jizhong. Management compensation, shareholding structure and corporate growth - data from pe support enterprises [j]. Economic Jingwei, 2012 (2)
[6] Li Wei'an, Li Huicong, Hao Chen. Research on the influence mechanism of executives' reduction and corporate governance GEM growth [j] Management Science, 2013 (4): 1~12
[7] Li Chuntao, Song Min. Innovation activities of Chinese manufacturing enterprises: the role of ownership and CEO incentives [j]. Management World, 2010 (5)
[8] Lu Xin, Zheng Yangfei, Li Jianmi, Research on the Impact of Financing Constraints on Enterprise r&d Investment - Empirical Evidence from Chinese High-Tech Listed Companies [j]. Accounting Research, 2013 (5)
[9] Ye Chengang, Liu Guichun, Hong Feng. How does equity incentives drive corporate R&D expenditure?——Based on the perspective of equity incentive heterogeneity [j]. Audit and Economic Research, 2015, 30 (03): 12-20.
[10] Chen Xiaohong, Ma Honglie. The Impact of SMEs' Technological Innovation on Growth——Technological Enterprises Are Different from Non-Technical Enterprises [j]. Science Research, 2012 (11)
[11] Xie Hongming, Cheng Cong. Has Enterprise Entrepreneurship Oriented Promoted Entrepreneurial Performance Improvement? A Test of Meta Analysis [J].Science Research, 2012, 30 (7): 1082-1091
[12] Zhou Ping, Yan Nan. The Growth of Entrepreneurial-Oriented Enterprises: The Role of Incentive and Supervised Corporate Governance——An Empirical Study Based on Chinese GEM Listed Companies [j] Economic Management, 2015, 37 (3): 44 ~ 55
[13] Zong Wenlong, Wang Yutao, Wei Zi. Can equity incentives retain executives?——Based on empirical evidence from China's securities market [j]. Accounting Research, 2013 (09): 58-63+97.
[14] Zhou Ping, Yan Nan. The Growth of Entrepreneurial-Oriented Enterprises: The Role of Incentive and Supervised Corporate Governance——An Empirical Study Based on Chinese GEM Listed Companies [j]. Economic Management, 2015, 37 (3): 44 ~ 55
[15] Du Yong, Pei Bo, Chen Jianying. Research on the impact of R&D investment on the business performance of high-tech enterprises [j]. Science and Technology Progress and Countermeasures, 2014 (2).
[16] Tang Qingquan, Xu Xin, Cao Yuan. Equity Incentives, R&D Investment and Sustainable Development of Enterprises [j]. Journal of Shanxi University of Finance and Economics, 2009 (8)
[17] Zhou Jianbo, Sun Jusheng. Research on the Governance Effect of Operators' Equity Incentives——Evidence from Chinese Listed Companies [j]. Economic Research, 2003 (05): 74-82+93.
[18] Peng Zhenglong, He Peixu. Key human capital, strategic position advantage and entrepreneurial performance of the founding team [j]. Management Science, 2014 (03): 24-38.
[19]. Chen Xiaohong, Li Yuhuan, Zeng Jianghong. Management incentives and empirical research on the growth of small and medium-sized listed companies [j]. Science and Science and Technology Management, 2007 (7)
[20] Zhang Hongli. Relationship between management compensation contract and R&D investment [d]. Master's thesis, Jinan: Shandong University, 2009.
[21] Liu Yunguo, Liu Wei. Senior executives and r&d expenditures of listed companies in China [j]. Management World 2007 (1): 128-136
[22] Zhang Zongyi, Zhang Mei. An empirical study on corporate governance and r&d investment behavior of high-tech enterprises [[j]. Science and Science and Technology Management, 2007 (5): 23-2
[23] Mao Liangzhu's SME Governance and Technology Innovation——An Empirical Study Based on SME Board [J]. China Science and Technology Forum, 2008 (9): 67-72.
[24] Cheng Xiaoke, Sun Jian, Yao Lijie. Research on the Value Relevance of Science and Technology Development Expenditure--Based on the Experience of Chinese Listed Companies Evidence [j]. China Soft Science, 2010: 141-150.
[25] Xia Wei. Research on the relationship between management compensation and company performance of listed companies [d]. Master's thesis, Nanchang: Jiangxi University of Finance and Economics, 2005.
[26] Zhang Zhengtang, Li Xin. The relationship between the salary gap of core members of senior management team and corporate performance [j]. Economic Management, 2007 (02): 16-25.
[27] Li Tao, Huang Xiaotong, Wang Chao. An Empirical Study of Enterprise Scientific Research Input and Business Performance——Comparison of Information Industry and Manufacturing Listed Companies [J]. Science and Science and Technology Management, 2008 (7)
[28] Wen Shengqiang, Liu Xing. The Impact of Ownership Structure on Corporate r&d Investment--Evidence from Manufacturing Listed Companies in 2002-2008 [j]. Soft Science.2010 (7): 32-36.
[29] Gao Lei, Dai Yong. Management incentives, enterprise development potential and financial risks——Based on panel data analysis of a-share listed companies [j]. Journal of Zhongnan University of Economics and Law, 2011 (3)
[30] Xu Zhijian, Xia Wei. The influence of the general manager, senior management team and core personnel equity on the growth of entrepreneurial performance [j]. Soft Science, 2011, 25 (04): 117-120+124.
[31] Zhang Yanhong. The impact of executive compensation incentives on corporate performance [j]. Economic issues, 2016 (06): 116-120.
[32] Sheng Mingquan, Che Xin. Management Power, Executive Compensation and Corporate Performance [j]. Journal of Central University of Finance and Economics, 2016 (05): 97-104.
[33] Zhao Huawei, Liu Aolong. Business Performance, Governance Mechanism and Executive Compensation Incentives [j]. Research on Financial and Economic Issues, 2015 (07): 114-121.
[34] Zhou Ping, Yan Nan. The Growth of Entrepreneurial-Oriented Enterprises: The Role of Incentive and Supervised Corporate Governance——An Empirical Study Based on Chinese GEM Listed Companies [j]. Economic Management, 2015, 37 (03): 44-55.
[35] Yi Zhaohui. Research on the relationship between resource integration ability, entrepreneurial orientation and entrepreneurial performance [j]. Science Research, 2010, 28 (05): 757-762.
[36] Zhang Qia. Ceo pay, power rent-seeking and M&A performance——based on the empirical analysis of listed companies in China [j]. Journal of Zhongnan University of Economics and Law, 2013 (05): 115-122.
[37]Xu Yixuan. Internal Compensation Gap, Business Performance and Corporate Governance——Evidence from Chinese Listed Companies[j]. Journal of Shanxi University of Finance and Economics, 2010, 32 (07): 86-93.
[38] Liu Jin, Chi Yufang. Empirical Research on the Influence of Executive Team Characteristics and Compensation Incentives on Internal Control Quality——Experience Data from GEM Listed Companies [j]. Industrial Technology and Economy, 2016, (2): 60 ~ 67.