An Empirical Study On The Influence Of Management Monetary Compensation And Equity Incentive On Total Factor Productivity Of Enterprises

With China's economic development entering the "new normal" mode,China's economy is gradually transforming from high-speed development to high-quality development.Therefore,TFP which measures the efficiency of economic development has become the focus of people's attention.From the micro point of view,one of the ways to improve the total factor productivity is to improve the corporate governance structure,which can promote the total factor productivity.Therefore,as a key element of corporate governance,how management monetary compensation and equity incentive affect the total factor productivity of enterprises has become the research direction of this paper.From the perspective of principal-agent problem and enterprise's total factor productivity,this paper uses the Olley and Pakes semi-parametric method to measure the total factor productivity of China's Listed Companies from 2014 to 2018 and obtains the total factor productivity which represents the enterprise's production efficiency.On this basis,this paper uses monetary compensation and equity incentive as explanatory variables and add relevant control variables for regression analysis,to study the impact of monetary compensation and equity incentive on enterprise's total factor productivity.The empirical results show that for the listed companies in China:(1)to improve the monetary compensation of the management can improve the TFP of corporate;(2)to increase the shareholding ratio of the management in the enterprise will have a negative incentive effect on the TFP of corporate;(3)the monetary compensation of the management in the non-state-owned enterprises and the enterprises in the growth period can achieve a more incentive effect on the enterprise's total factor productivity.But in the state-owned enterprises and the mature enterprises,the incentive effect is relatively insignificant.This study achieves that in China's Listed Companies,the monetary compensation of the management plays a significant role in promoting the enterprise's total factor productivity of enterprises,while the role of equity incentive is the opposite.The impact of monetary compensation and equity incentive on TFP is also different among different groups.Therefore,enterprises should design monetary compensation and equity incentive structure reasonably on this basis,and adopt more suitable methods for enterprises with different property rights and different life cycle,to improve the total factor productivity of enterprises more comprehensively and pertinently,and finally promote the development of the "new normal" of China's economy.