Research On Executive Incentive And Its Impact On Performance In The Mixed Ownership Reform Of Competitive State-owned Enterprises

As an important subject of the socialist market economy,state-owned enterprises play a leading role in economic development and are an important material basis for China’s sustainable development.In 2015,the Central Committee of the Communist Party of China and the State Council promulgated the Guiding Opinions on Deepening the Classification Reform of State-owned Enterprises,which divided state-owned enterprises into public welfare and commercial categories according to their functional orientation and promoted the reform of state-owned enterprises by categories.However,in the process of deepening the classified reform of state-owned enterprises,problems such as insufficient executive incentive,low management efficiency and insider control affect the establishment of market-oriented operation mechanism of state-owned enterprises.As the backbone force of state-owned enterprises classification reform,it is of great theoretical and practical significance for the future healthy development of state-owned enterprises to study and discuss how to establish and perfect the incentive and restraint mechanism for senior executives of competitive state-owned enterprises.This paper conducts research on the current situation of mixed ownership reform and the implementation of senior executive incentive in competitive state-owned enterprises.H Company,which in a competitive industry is selected as the research object.Various research methods such as case study,event study method are used to analysis the motivation and the differences of conduct senior executives incentive plans.The impact of the implementation of senior executive incentive plans for the company is further analyzed in combination with the market performance changes,and the value of state-owned assets and economic indicators of change.The paper further discusses the influence mechanism of company performance from the perspectives of governance structure,principal-agent cost,innovation ability and investment efficiency.The study finds that:(1)Senior executive incentive is beneficial to the construction of talent team.The fund incentive plans of H Company made up for the lack of motivation of the traditional compensation structure and better matched the efforts and rewards of the executives.(2)Senior executive incentive is conducive to sending positive signals.During the event period when H Company announced its incentive plan,the cumulative excess return showed a continuous rising trend.(3)Senior executive incentive is conducive to stable operation and development.The implementation of executive incentive plan in H Company increases the value of state-owned assets and guarantees the operating benefits of state-owned assets.In addition,the company’s income quality level is stable,which may be related to the reduction of agency cost and the enhancement of R&D and innovation ability of the company.However,the company has the problem of insufficient investment,which may affect the development speed of the company.Generally speaking,since the implementation of executive incentive plan,the company has been in a stage of steady development.Finally,optimization suggestions are put forward in view of the problems existing in the design of H Company’s executive incentive plans,such as assessment indicators,weight setting and distribution method.In other words,the company needs to set industry relative indicators in combination with the economic environment;Appropriately reduce the weight of indicators with low difficulty to complete;Define the allocation object and continue to refine the distribution method.