An Empirical Study On The Influence Of Executive Motivation On Financial Performance Based On Internal Control

With the increasingly fierce competition in the globalized economy,the company’s business decision-makers,with their solid expertise and rich management experience,lead the management team to respond to the rapidly changing business environment and play a decisive role in the growth and development of enterprises.Executive motivation has always been a difficult task and a focus in the eyes of the public.Salary incentives lead to sky-high salaries and related issues.In response to this problem,there are "restriction orders" at home and abroad,which have played a very important role in adjusting the income distribution relationship between the person in charge of the enterprise and employees and promoting social equity Good effect,but some people have reservations about salary limits.With the promulgation of the Sarbanes-Oxley Act,internal control has become the focus of attention of companies and many scholars.Building a good internal control system,effectively balancing the power of the.management,and effectively supervising the management activities of the management can significantly ease the agency.Problems,and then promote the improvement of the company’s financial performance.This article incorporates executive incentives,internal control,and financial performance into the same empirical research model,and uses regression analysis methods to study the relationship between various dimensions of executive incentives and financial performance,as well as the adjustment effect of internal control on the two.Under the internal control system,the impact of different dimensions of the salary system on financial performance is explored to reveal the relationship.By combed the existing literature,combined incentive theory and championship theory,the 2014-2018 data of 519 A-share listed companies in my country is used as a research sample to study the impact of executive incentives on financial performance from the perspective of internal control.The article divides executive incentives into four dimensions:salary incentives,equity incentives,promotion incentives,and on-the-job consumption,and analyzes the relationship between each dimension of executive incentives and financial performance,and the relationship between internal control and financial performance.In the regression model,the moderating effect of internal control on the relationship between executive incentives and financial performance was studied.The study found that executive compensation incentives and on-the-job consumption have a significant inhibitory effect on the improvement of financial performance.Equity incentives and promotion incentives are significantly positively related to financial performance;the better the quality of internal control,the better the financial performance,and the two are significantly positively related;internal Control has a moderating effect on the relationship between executive incentives and financial performance.Internal control weakens the negative correlation between salary incentives and in-service consumption on financial performance,and strengthens the positive correlation between equity incentives and promotion incentives on financial performance.The research in this paper helps shareholders to correctly understand the impact of executive incentives on corporate financial performance,and provides a useful reference for establishing a diversified executive incentive mechanism for listed companies in my country.