Study On The Executive Compensation Incentives And Company Growth Ability

As the most important part of the market economy development,the enterprise's survival and development have a very important role in the overall economic operation,which makes the study of the company's growth ability has a high degree of urgency.Company growth ability is the ability of the company to maintain continuous upward growth during the period through constant exploitation of unutilized resources and effective allocation of existing resources.It is reflected in the continuous improvement of the company's ability to innovate,profitability and growth.The manager of the company is the handsome of the enterprise and the soul of the enterprise.Their pioneering thinking and Forward-looking decisions are critical to the sustainability of the company.In modern corporate governance,managers' capabilities and their efforts are critical to the survival and growth of the company.Remuneration to managers is conducive to stimulating the potential of managers' human capital and promoting their active efforts to enhance their growth capabilities.Therefore,the topic of research on managerial compensation incentives and corporate growth ability in this paper has the urgency of the times and crucial theoretical value and practical significance.From the point of the company's growth strategy,this thesis focuses on the relationship between management incentives and corporate growth capabilities,then selects financial public data of listed companies in the information technology industry in China for the three years from 2014 to 2016 as research samples,Using correlation analysis and multiple linear regression analysis,empirically examines the correlation between executive compensation incentives and corporate growth capabilities.Through empirical research,it is found that there is a weak negative correlation between management's cash compensation and the company's growth capacity.The main reason for the analysis is that the cash compensation incentive is excessive;There is no correlation between the management internal compensation gap and the growth ability of the company;There is a significant positive correlation between equity incentives and equity incentive ratios and corporate growth capabilities,and equity incentive ratios have a greater impact on corporate growth capabilities;In addition,among the control variables,the size of the company and the proportion of shares held by the top five shareholders have a significant positive impact on the growth capability of the company.The company's asset-liability ratio has a significant negative impact on the growth capability of the company.The research results of this thesis prove that there is a correlation between executive compensation incentives and corporate growth capabilities.Therefore,combining the research theory and empirical research results,this paper proposes some feasible suggestions for further improving the growth capability of Chinese enterprises.The first is to improve the design of strategic compensation incentive mechanism from the perspective of corporate growth strategy;the second is to establish a scientific and reasonable compensation structure and strengthen incentives for company equity incentives;third is to improve compensation performance evaluation system and effectively perform compensation performance Docking;fourth is to optimize the internal governance structure of the enterprise and form an effective joint management force.