An Empirical Study On The Relationship Between Executive Incentive And Performance In The Gem Information Technology Industry

With the outbreak of the subprime mortgage crisis in the United States,most companies have a survival crisis,and senior managers of the company get the annual salary but don't get rid of the crisis.Which makes us doubt the correlation between executive incentive and corporate performance.In order to enrich the case of the research on the relationship between executive incentive and corporate performance,68 listed companies annual financial statements data are Selected as the research sample from gem information technology industry during 2014 to 2016,and combine monetary compensation and executive shareholding as executive incentives,then the main research is what influence of the change of executive incentive to company performance.First,related concepts and theoretical elaboration of the information technology industry of gem were introduced,and through the theoretical analysis of executive compensation and the proportion of executive stock ownership and company performancethe,then analysis current situation and problems of executive incentive and company performance from theoretical aspects.Secondly,by analyzing related theories to set up hypotheses and select variables and then build models,with regression analysis of the model with EViews software.The research found that executive compensation is positively correlated with REVA,ROA and EPS,executive shareholding ratio is negatively correlated with REVA,ROA and EPS,the asset-liability ratio is negatively correlated with REVA,ROA and EPS.Finally,based on the above conclusions and the related reasons are analyzed,then suggestions are put forward.For exampel,improving market efficiency,establishing a perfect executive incentive system,improving corporate governance structure and enhancing the supervisory role of the board of supervisors.After that,the insufficient of research were pointed out and the the prospect of executive incentive and performance in Gem information technology industry is expected.