Research On Effect On Financial Performance From Executive Incentive In Innovative Enterprise And Strategy

The problem about relationship between executive incentive system and enterprise financial performance is always focus in the academy world and practice world. As early as age 20 in the last century, Western scholars began to executives and financial performance incentive mechanism to study the relationship. With the whole world economics in the finance crisis, the problem about Incentives for business executives on the financial performance but also what impact; what kind of incentive mechanism in order to better power management and other issues to stimulate is the topic by experts and scholars. Innovative enterprise must had core technology and own brand, Development of innovation-oriented enterprises in China is undoubtedly the world financial crisis to face one of the key. Executives is a leader in innovative enterprises, innovative enterprises and efficient, sustainable and innovative premise is to have good senior management. Therefore, the study of innovative executives incentives and financial performance, improving the executives an incentive mechanism, based on the upgrading of innovative enterprise's financial performance and the achievement of the sustainable development of innovative enterprises have important significance.based on the innovative enterprises, executives and financial performance incentives and other related concepts to define, First of all, respectively, from the economics, management, and related the angle of Finance introduced the innovative executives incentives and financial performance, the theoretical basis, and is divided into three levels of incentives for innovative executives its impact on the financial performance of the theoretical analysis to arrive at innovative executives incentives to affect the financial performance of the theory of the path. Secondly, from the innovative enterprises in China's own characteristics of the incentives for executives to describe and analyze the status and use panel data model of the 50 executives listed innovative incentives for the impact of the financial performance of empirical analysis. Empirical results show that, this existed some long-term and stable relationship between executive incentive and financial performance in innovative enterprise; through the estimate result of random effects models and fixed effects models, top three executive salaries could accelerate the earnings per share in short term, and the effect is not continuo; top three executive salaries could affect net profit increasing rate and capital turnover rate in short term. Effect of it on Asset-liability ratio ratio is not absolutely.Finally, combined with theoretical analysis and empirical analysis, based on the theory and reality by contrast, focused on creative enterprise executives incentives to defect exist, based on improved financial performance of the angles of internal motivation and external incentives from both the right innovation-oriented enterprises to improve their own incentives to executives to propose a solution proposal. To improve the innovative incentive mechanism within the enterprise made a sound internal governance, focusing on the executives of innovation incentives and the establishment of a wide range of incentive mechanisms for the system response; Innovative enterprises in enhancing the efficiency of the external incentives were made to cultivate the market manager to speed up the building of the capital market, establish and improve relevant laws and regulations, the establishment of entrepreneurial innovation and recognition system and focusing on the construction of society as a whole culture of innovation proposals.