An Empirical Study On The Top-management Incentives And Corporate Performance Of China's Listed Companies

In 1998,China's listed companies disclosed the relevant information of the shareholdings and annual remuneration of their senior executives.The empirical studies on the top-management incentives and corporate performance gradually increased after that.What's more,it drew the attention of the domestic securities market and listed companies.Based on the domestic empirical study on top-management and enterprise performance,this thesis tests the relations between the top-management incentives in different locations,industry attributes, enterprise scales and enterprise performances,with correlation analysis through the annual financial data of China's listed companies in 2006.The thesis also puts up with suggestions on the top-management incentives of listed companies based on the results of the study.The results show:the relation of top-management incentives of listed companies at different locations and enterprises performance is significant positive correlated,but found that the more developed regions the listed companies locate,the smaller the incentive results are;the relation of top-management incentives of high and moderate competitive industries and enterprise performance is positively correlated,while there is no significant relation between top-management incentives of the weak competitiveness industries and corporate performance; the relation of the top-management incentives of large enterprises and enterprise performance is significantly correlated,while the small and medium enterprises and corporate performance,not significant related.According to the above conclusions,the thesis thought the results of incentives has a marginal decreasing effect,while the cumulative effect of incentives is incremental increasing at the same time.