Top-management Incentive,Top-management Decisions And Company Performance

Corporate culture refers to the unique cultural image formed by its internal values,rituals,codes of conduct,modes of conduct and overall strategy.In short,corporate culture is all aspects of the daily operation of an organization.The recognition degree of enterprise culture is the recognition of enterprise culture from the top management to the bottom staff.With the increasing number of enterprises,the market competition increases.Enterprises make effort to improve their performance through the external market,meeting the demand of consumers.At the same time,they pay more attention to strengthen internal management through the right internal decision-making and execution efficiency of the staff to improve the performance of enterprises.And enterprise culture is an important form of strengthening the management of the enterprises.With the expansion of the organization scale,some enterprises also need corporate culture as a spiritual incentive to bond various parts of the organization to achieve effective control.Top management is the decision maker and executive of enterprise strategy.Executive incentive,which is one of the most common way of equity incentive and monetary compensation,is a common way for enterprises to improve their performance.The relationship between top-management incentive and enterprise performance is also a hot topic in academic circles.Relevant foreign studies generally affirm the improvement effect of executive incentive on corporate performance,but the domestic literature considers that the improvement effect of executive incentive on performance is not obvious in some cases.This paper takes corporate culture as the entry point,studies the difference in the influence of executive incentive on corporate performance under the situations of different corporate culture recognition,and the adjustment of corporate culture.Choosing two enterprises of Gree and Le Eco as cases,the author researches the evaluation and related performance of enterprise culture through collecting a large number of evaluation materials and telephone interviews to learn the recognition of enterprise culture within the enterprises,and makes analysis andcomparison.The author finds that in the case of Gree’s high corporate culture identity,executive incentive had a promotion effect on performance,while in the case of Le Eco’s low corporate culture recognition,executive incentive had no obvious promotion effect on performance.We can see that the level of corporate culture recognition can adjust the promotion effect of executive incentives on performance.This is of great significance to clarify the relationship between material incentives and spiritual incentives,to help enterprises realize the importance of corporate culture,to cultivate and improve the corporate culture that is conducive to the long-term development of enterprises,and to strengthen the internal management of enterprises.