Entrepreneurship,Incentive Mechanism And Enterprise Performance

Research of corporate governance theory has long focused on the influence of entrepreneurship and incentive mechanism on business performance.The main reasons for choosing this topic are as follows.Firstly,due to the emphasize on the development of state-owned enterprises and the block of "gray zone" of some private entrepreneurs,a public opinion of "The state advances as the private sector retreats" emerges.A file from The CPC Central Committee and State Council named"Opinions on building a healthy growth environment for entrepreneurs,promoting outstanding entrepreneurship and giving full play to the role of entrepreneurs”specified the position and vale of entrepreneurship with documents for the first time.Therefore,based on empirical analysis,this paper will analyze whether the influence of entrepreneurship on business performance result from the difference between the incentive mechanism of state-owned enterprises and private enterprises is unbiased.Secondly,the new form of entrepreneurship appears.In the background of knowledge economy,the high-tech industries,such as BATJ,are springing up in China.They take a different form in entrepreneurship compared to traditional industries.So how will they affect business performance?Thirdly,this paper will research the types of incentive mechanism.The incentive mechanism of state-owned enterprises is mainly monetary compensation.Based on the characteristics of capital market and knowledge economy,this paper makes a demonstration in three aspects,which are monetary compensation,equity incentive and salary gap,to explore the effect of types of incentive mechanism on business performance.After review principal agent theory,transaction cost theory and incomplete contract theory,this paper establishes entrepreneurship as an mediate variable while study the influence of incentive mechanism on business performance,as entrepreneurship and incentive mechanism both have an influence on business performance and entrepreneurship is affected by incentive mechanism.As a result,the influence of incentive mechanism on business performance can be divided into two parts:the direct impact of incentive mechanism on business performance and the indirect impact of incentive mechanism on business performance through incentive mechanism.Furthermore,this paper makes use of empirical analysis with data of 1661 listed companies in the Shanghai and Shenzhen markets during the period of 2012 to 2015.Types of incentive mechanism are analyzed in the aspects of monetary compensation,equity incentive and the salary gap and entrepreneurship is analyzed in the aspects of technological innovation,organizational innovation,risk taking and opportunity identification.Sobel mediator effect test is used to test the mediating effect of entrepreneurship on the influence of incentive mechanism on business performance.Since incentive mechanism of state-owned enterprises and private enterprises differs due to ownership,this paper summarizes the effect of types of incentive mechanism on business performance based on the empirical analysis of total effect,direct effect and indirect effect of incentive mechanism to business performance.Moreover,the mediating effect of entrepreneurship of traditional industries and high-tech industries is compared to analyze the different influence of incentive mechanism on business performance.In conclusion,firstly,monetary compensation and equity incentive have significant impacts on business performance while salary gap has little impact.So egalitarianism is still applicable in China to some extent.Secondly,the mediating effect of entrepreneurship is significant in the influence of monetary compensation and equity incentive on business performance.By comparing and analyzing private and state-owned enterprises,the paper has the following two conclusions.First,the total effect of equity incentive on business performance is not significant in the incentive mechanism of state-owned enterprises.Through sample analysis,the proportion of state-owned enterprise without entrepreneur ownership is up to 39.4%and low stock ownership has no significant influence on business performance.Second,in the influence of monetary compensation on business performance,the mediating effect of risk taking in the entrepreneurship of state-owned enterprises.Which is to say,monetary compensation in state-owned enterprises cannot stimulate the ability of risk taking.What's more,the mediating effect of entrepreneurship is significant and consistent in traditional industries and high-tech industries while the total effect of the monetary compensation incentive mechanism in high-tech industries has no significant influence business performance.In a word,although this paper focus on a familiar topic from new aspects,it has research significance in both theory and reality.