Product Market Competition, Executive Incentive And Corporate Performance

With the transformation of the economy of our country, the market economy is constantly improve, an influx of foreign capital, the vigorous development of private economy, enterprises have been the growing influence of the external market environment, the effect of product market competition on enterprise development have nots allow to ignore. And a good corporate governance structure is not only from the corporate governance, internal governance and external governance should be combined, so that is a complete corporate governance structure. Many researchers have paid attention to this problem and studied, but the conclusion is not consistent. In the domestic research mostly just on the pairwise relations research, the three of them into the same model of regression analysis of the literature is relatively small. In this paper, the of our country listed company product market competition, executive incentive may have on the performance of the company and product market competition and executives incentive effect on Corporate performance relationship between empirical research, hope to be able to come through the conclusion to solve practical problems have certain reference value.Firstly, this paper makes a comprehensive review of the main theoretical results of the relationship between product market competition, executive incentive and corporate performance, and introduces the relevant theoretical basis and the definition of related concepts. Then select the data of China’s 2011-2014 listing Corporation as a sample, empirical test of the relationship between product market competition, executive incentive and corporate performance of the relationship between the three. The main research work is as follows: 1. According to the theoretical analysis, select the variable metric;(2) the empirical tests the relationship between the product market competition, executive incentive and corporate performance;(3) through empirical results on the relationship between the three is analysis concluded;(4) according to the conclusions proposed countermeasures and suggestions.Empirical study results show that:(1) full product market competition environment will hinder the improvement of corporate performance; II of executive incentive and firm performance are positively related, mainly reflected in the executive compensation incentive; executive equity incentive and corporate performance has no significant relationship;(3) in promoting corporate performance improvement, product market competition and managerial incentive exists certain complementary relationship, this relationship mainly reflected in the executive compensation incentive.At present, our country is in the economic transition period, the product market competition and the executive incentive has its different characteristics. Therefore, the study of the relationship between China’s listed company’s product market competition, executive incentive and corporate performance in promoting China’s economic development, promote the reform of the incentive mechanism of and promote the healthy development of listed companies has important practical significance.