Study On Relationship Between Executive Incentive And Corporate Growth

The theory of internal growth factors holds that internal factors of an enterprise are the factors that really limit the expansion of the enterprise.The management capability is the internal driving force for the growth of the enterprise.Therefore,the research focus of the company's growth should shift to internal governance factors.The innovation theory holds that the sustainable development of enterprises comes from technological innovation.At the present stage,the competition between enterprises has gradually changed from the original competition based on the resource market to the current innovation strength marked by independent innovation.That is,the competition between companies at this stage is actually the competition of the company's innovation ability.As the most important human capital,executives hold the company's key core business resources,and guide the company's business decisions and strategic direction.It will undoubtedly play a crucial role in the growth of the company.How to maximally mobilize the executives team's enthusiasm of the work and clear the impact of the executive team's behavior on the company's strategic decisions are of great significance to the enterprise.Compared with non-family companies,the strong kinship of family businesses makes more internally cohesive.Family ownership may be able to slow the agency conflict between managers and shareholders,but at the same time the agency costs are still inevitable.Therefore,family businesses also began to implement executive incentives.However,based on the particularity of both family executives and non-family executives are in family business,can these incentives achieve the desired incentive effect in the corporate governance process,thus affecting the growth performance of the family business?What role does the family factor play in this process?This paper places the relationship between executive incentives and corporate growth in the specific context of the GEM family company,exploring the effectiveness of executive incentives in family businesses,and the impact of different family involvement scenarios on executive incentives and corporate growth relationships,and validates R&D investment as an intermediary variable in the specific expression of its role in the path.After combing related literature and theory,the paper build a model of GEM family business "executive executives-corporate growth research".This paper builds a panel data from observational samples of the GEM family listed companies for the period from 2012 to 2016,and the empirical analysis was used to draw conclusions from this study:(1)The executive compensation incentives of the GEM family companies have a positive effect on the growth of the company.(2)For the GEM family companies,there is a nonlinear relationship between incentives and corporate growth that first increases and then declines.(3)R&D investment plays a mediating role in the relationship between executive salary incentives and corporate growth,equity incentives and corporate growth.(4)Family ownership involvement positively adjust the relationship between executive equity incentives and R&D investment,while family management involves negatively adjust the relationship between executive salary incentives and R&D investment.