Executive Compensation Incentive,Technology-innovation Dynamic Capability And Enterprise Performance

With the further development of Knowledge-based economy,the trend of economic development dominated by technological innovation is becoming increasingly evident.China is in a new stage of economic restructuring,and it is helpful to encourage enterprises' technological innovation to promote the sustained growth of social economy.Under the modern joint-stock enterprise,executive compensation incentive as a kind of important means of corporate governance,plays a guiding role to enterprise's technological innovation behavior,and as also as executive compensation incentive are closely linked with the enterprise performance.Therefore,theoretically,it is very necessary to study the relationship between the incentive of executive compensation,the capability of technological innovation which represented by the dynamic capabilities of technological innovation and the enterprise performance,and further analyze the function path of the dynamic capabilities of technological innovation among the three parties.Drawing on the data of China's A-share private enterprises from year 2011 to 2015,this study investigates the relationship of technology-innovation dynamic capability between executive compensation incentive and enterprise performance by mediating effect method.Research conclusion in this paper includes the following several aspects:(1)Monetary compensation of executive has a significant impact on the enterprise accounting performance and market value,the effect of monetary compensation of executive on market value is transferred through the technology-innovation dynamic capability;(2)Executive equity incentive doesn't have a significant impact on the enterprise accounting performance and market value,but the technology-innovation dynamic capability is not significant between the executive equity incentive and accounting performance.These results show that executive monetary compensation can effectively promote the innovation activities of enterprises to improve the long-term performance of enterprises.In the current compensation incentive system for executives,monetary compensation is an effective incentive method.In the end,according to the conclusions of this paper,we give the feasible policy suggestions on the compensation incentive and internal governance of private listed companies from the enterprise and the government level.