The Research On The Relationship Between The Executive Incentive Of High-tech Enterprise And Corporate Performance

Academia have been keen to study the relationship between executive incentive and corporate performance.As the social and economic life of cells, the enterprise entered the Post Financial Crisis Era,which deepen the reform in succession, in the face of serious internal and external environment.we will accelerate the establishment of a modern enterprise system framework,meanwhile,promote the separation of ownership and management rights. The owner of the company have incomplete information,and operators and managers is not entirely match in terms of interests and goals.Problems of moral hazard and adverse selection problem, which emerge in front of the company’s many stakeholders, bring different degree of agency cost.Contract signed by owner and operator principal-agent contract to establish contact.how to betterly manage the daily business of the company agent, It will need to set up a scientific and reasonable executive incentives,to create a company "win-win" situation between owners and agents. Incentive is designed to make executives to maximize corporate interests. But, in reality, executive incentive is a double-edged sword, on one hand,it can motivate managers to play a better personal talents, on the other hand, management may also lead to loss of competitiveness to make the company owners lose control of the company. Under the background of the enterprise development, executive incentive must be considered the life cycle stage characteristics and the external environment of enterprises.the competition of the operating conditions will also affect the executive incentive.High-tech enterprises are the backbone power to improve the competitiveness of our country. Compared with traditional enterprise, his enterprise life cycle stage characteristics is more significant, therefore, putting the consideration under the background of enterprise life cycle, which has the certain reference value and theoretical significance.The source of empirical research selects the listed high-tech company data by reading the related literatures at home and abroad.Through theoretically analysising and putting forward the assumption of the empirical research,this article attempts to place the sample enterprise senior management incentive,under the background of listed high-tech company life cycle, to analysis the relationship between them.Through the empirical research,We have the following conclusion: In the formative start-up stage, the effect which executive incentive puts on the corporate performance is not obvious, there is no correlation between them; Into the growth stage, There is a positive correlation relationship between executive incentive and corporateperformance.Into the mature stage,Executive incentive have limited improvement to enterprise performance which show no significant positive correlation.When the company into recession,enterprise vitality is declining,executive incentive for enterprise performance improvement is limited, which presents negative correlation between executive incentive and corporate performance.In each life cycle stage, company size and the proportion of independent directors on the board will play an important role, causing the listed high-tech company scale reward have a positive impact to management.The proportion of independent directors on the board of executive behavior produce certain restriction role,which impacts on high speed range and remuneration.We put forward to the management advice: improve the information disclosure system and the level of disclosure and transparency; Focus on enterprise life cycle, strengthen the executive incentive; Optimize the structure of corporate governance, give play to the role of independent directors of independent supervision; To establish the compensation committee, improve the level of salary incentive; Promote the manager market mature, accelerate the construction of the human capital market.We find that previous studies seldom consider the enterprise’s difference.The innovation of this paper puts the relationship in the enterprise life cycle perspective,focusing on listed high-tech company to analysis.We find the enterprise executive incentive is one of the factors affecting enterprise performance, in the different stages of the enterprise life cycle,which doesn’t always match.