Study On The Relationship Between Strategies Performance Measures Of Executive Compensation Contract And Corporate Performance

Performance evaluation has become one of the hot issues in the study of the theoretical and empirical world. Theoretically it is focused on the study of design and effect of performance evaluation system, while many companies try to improve and perfect the performance evaluation model, and the government had made the relating rules to evaluate the state-owned and the central enterprises'managers, which means that performance evaluation has been attracted and emphasized. Performance evaluation model can be divided into financial model, value model and balance model. Among them, a balanced model is adding the non-financial measures into performance evaluation systems. It can be carried out more efficiently communicating business vision and goals, transforming strategy into measurable and actionable indicators, achieving enterprise performance goals. The question that what's the relationship of strategy and performance measures and how they affect corporate performance is worthy to research.In this paper, we gain the public disclosure information through the listed companies, and use confirmatory factor analysis to reflect the company's competitive strategy whether tending to overall cost leadership or differentiation on essence of contingency theory, and strategic management theory. On this basis, we explore the difference of the performance measures in different strategic oriented enterprises, and in this part we adopt he current tracheotomy in the performance measures for classification .Also we investigated whether performance is positive with the match of strategy and performance measures. The results show that, in general, the enterprise with different strategies shows some differences on the performance measures'features. The enterprises'current performance is positive with the match of innovation differentiation strategy and non financial measures system. What's more it proves that the next performance is positive with the match of overall cost leadership and customer differentiation strategy and non financial measures.This study first did the research about the relationship of strategy, performance measures and corporate performance using the public material. What'more, we categorized the measures into financial, non financial and objective measures. This essay on the one hand helps validate whether the relationship between , strategies, performance measures and corporate performance is adapt to our country, and the foreign countries result is the same in China, it also helps to understand the relationship of the three elements, and provides enterprises empirical evidence for reference in the design of performance evaluation system of executives .