State Enterprises Pay Incentives And The Relationship Between Corporate Performance

It is said that business enterprise ownership and management were separated in state-owned enterprises. Firstly, this makes intelligence and labor devotions hardly get capital income, they just mainly take their salary without participation the distribution of surplus profit. This makes difficult to reach consistency in objectives among the ownership of enterprises and managers, the managers may have motivation of laze and may abuse the power for themselves benefit. Secondly, the indivisibility of manager's human capital and human capital's ownership as well as the difficulty in behavior of managers makes it possible in lazing and abusing the power for themselves benefit. Researchers have brought forward various incentive measures to prompt manager's enthusiasm. But so far we are still not clear whether if incentive measures could result in the higher enterprise performance and what kind of invigorative combination could cause a higher enthusiasm in improve enterprise performance. All these shall be cleared before any incentive measure to manager can be decided. Base on above consideration, this thesis will carry out an empirical study on the correlation between the manager incentive compensation and enterprise performance.This thesis starts with the facts of enterprises to explain the importance of incentive compensation to managers. Then study and analysis the available published documents as well as enterprises' existing incentive measures and key performance index to bring forward a correlation model between the incentive compensation and enterprise performance. Considering the measurable research, we put all factors of incentive measures and enterprise performance into related indicators represented as questionnaire. After questionnaire collection, we conduct overall data analysis, reliability analysis and regression analysis by taking advantage of software SPSS13.0 to make a theoretical research. From the result of empirical study, it is shows that incentive compensation could influence enterprise performance in a certain stand and incentive compensation affect even more on enterprise performance under spiritual incentive.