Research On The Influence Of Executive Incentive On The Quality Of Company Export Products

Although China is a large trading country,it is not a strong trading country.In recent years,with the gradual rise in labour costs,the foreign trade development model of relying on traditional price advantages to compete in the international market has become unsustainable.Therefore,China’s foreign trade is being transformed to high-quality development.Research on how to improve the competitiveness of foreign trade products and enhance product quality has become the way to shape a new competitive advantage for China’s exports.Accordingly,based on the perspective of corporate governance,this thesis explores whether executive incentives play a crucial role in upgrading the quality of a company’s export products,and provides a specific analysis from both theoretical and empirical perspectives.In terms of theoretical research,this thesis explores the influence mechanism of executive incentives on export product quality based on a review and study of relevant literature at home and abroad,so as to put forward the research hypothesis.The hypothesis is that executive incentives will influence the quality of export products through increasing R&D investment,improving risk-taking level and alleviating financing constraints,while internal control will have a negative moderating effect on the influence of executive incentives and the quality of export products.On the basis of this,the choice of executive incentive indicators is specified as equity incentive and compensation incentive,and the method of export product quality measurement is the demand function backtracking method.In terms of empirical research,this thesis selects A-share listed companies as the research sample and uses the China Customs database to measure export product quality at the firm level as the explanatory variable,and then uses the internal governance data of listed companies to measure executive incentives as the explanatory variable,and finally empirically tests the research hypotheses by combining the data.The empirical findings indicate that:(1)Executive equity incentives significantly enhance the quality of a firm’s exported products,with all control variables controlled for,and executive compensation incentives can have a dampening effect on the quality of a firm’s exported products,and the above findings still hold in a series of robustness tests.(2)In the moderating effect test,it is found that internal control negatively moderates the relationship between executive incentives and the quality of a company’s export products.(3)In the mediating effect analysis of the mechanism of influence test,it is found that executive equity incentives further affect the quality of a company’s export products by increasing R&D investment,increasing risk-taking and alleviating the financing constraint channel,while executive compensation incentives have the same effect by increasing risk-taking and alleviating the financing constraint channel.(4)The following findings were found in the heterogeneity test.After distinguishing the firms’ regions,it is found that the quality of exported products is more influenced by equity incentives in east-central firms,less influenced by equity incentives in west firms,more influenced by compensation incentives in east firms and less influenced by compensation incentives in west-central firms.After distinguishing the nature of the firm’s equity,it was found that executive incentives had a significant impact on the quality of export products of state-owned,private and foreign-owned firms.After differentiating the level of attention,it is found that executive incentives have a significant impact on the quality of export products in firms with high analyst attention and high research analysis attention,while the impact of executive incentives on the quality of export products in firms with low analyst attention and low research analysis attention is not significant.After distinguishing between board independence,it was found that executive incentives had a significant impact on export product quality in companies with high board independence,but not in companies with low board independence.Finally,based on the above research results,this paper puts forward four specific suggestions for enterprises,including building a reasonable executive incentive mechanism and increasing the intensity of equity incentive.