Research On Executive Compensation,Corporate Social Responsibility And Financial Performance

In recent years,more and more exposure of corporate social responsibility incidents has brought many negative effects to enterprises.Enterprises should pay more attention to the fulfillment of social responsibility,especially for the chemical industry.If enterprises lack awareness of social responsibility,it will not only damages the social image of the company,but also is not conducive to the improvement of financial performance.Therefore,in order to improve financial performance,we should take the initiative to assume social responsibility.At the same time,a reasonable executive compensation system can also help to stimulate the enthusiasm of senior management,so that executives can consider the long-term interests of enterprises,do more things that benefit the corporate social image and attract more investment to improve performance.It can be seen that the reasonable management compensation affects the relationship between corporate social responsibility and company performance.This paper explores the internal relationship among executive compensation,corporate social responsibility and business performance,advocating for the establishment of a reasonable executive compensation system and active social responsibility.This paper takes the relevant data of 801 A-share listed companies of chemical industry in China from 2015 to 2017 as the research object,studies the impact of corporate social responsibility on financial performance in the chemical industry,and adds executive compensation to further research.The empirical results show that the executive compensation of listed companies in the chemical industry has a positive impact on financial performance,implementing corporate social responsibility of chemical industry has a positive correlation with financial performance,and developing reasonable executive compensation of chemical industry has a significant positive impact on the relationship between corporate social responsibility and financial performance.Finally,this paper puts forward countermeasures and suggestions on the basis of summarizing the research conclusions.