Research On The Relationship Between Employee Compensation Incentives,internal Control And Enterprise Performance Of Listed Information Technology Companies

In recent years,Chinese information technology industry,like a surging tide,has shown an irresistible trend,and now it has become a powerful motor to drive economic growth.All kinds of products and services provided by the information technology industry provide a steady stream of power for the improvement of quality,efficiency,transformation and upgrading of various industries in Chinese national economy.As a knowledge-,technology-,and talent-intensive industry,the information technology industry must pay more attention to the core capital of talents.Employees are the main force for enterprises to create economic benefits.Executives undertake the important task of enterprise strategy formulation and blueprint planning,and ordinary employees are responsible for implementing the plan made by managers and putting it into practice.The joint operation of the two will drive the high-level development of the information technology industry.Faced with the rapid development of the industry,major enterprises are also scrambling to introduce high-quality talents,which leads to fierce competition for talents in the information technology industry.How to mobilize the enthusiasm of executives and ordinary employees,attract high-quality human capital,and use salary incentive mechanism to promote employees to release their potential,so as to improve enterprise performance is an urgent task on the way forward for this industry.Therefore,this dissertation is devoted to discussing whether the salary incentives for executives and ordinary employees of listed information technology companies can improve enterprise performance,and comparing their salary incentives.In addition,with the promulgation of the Sarbanes-Oxley Act,internal control has become an important factor in the development of enterprises.Because of the unbalanced internal control quality of listed information technology companies in China,it is imperative to establish a sound internal control system.Effective internal control can promote the full play of salary incentive effect by reducing the information asymmetry within the company,strengthening the supervision of employees and improving the communication efficiency among employees.Therefore,this dissertation takes the internal control as the regulating variable,explores the influence of internal control on the relationship between salary incentive and enterprise performance,and whether there are differences between the salary incentive effect of state-owned enterprises and non-state-owned enterprises and the regulating effect of internal control,hoping to provide effective suggestions for information technology enterprises to formulate a reasonable and effective salary system and promote their high-quality development.Firstly,this dissertation sorts out the domestic and foreign researches by subject.The literature review covers the influencing factors of enterprise performance,the relationship between salary incentives of executives and ordinary employees and enterprise performance,the relationship between internal control and enterprise performance,and the relationship among salary incentives,internal control and enterprise performance.Secondly,it defines the concepts of information technology enterprises,executives,ordinary employees,internal control and salary,and expounds the principal-agent theory,human capital theory and incentive theory.Then,it analyzes the present situation of employee salary incentive,internal control and enterprise performance of listed information technology companies,and summarizes the existing problems in this industry.At the same time,combined with the current research situation,this dissertation analyzes the effect of salary incentives of executives and ordinary employees on enterprise performance and the adjustment mechanism of internal control.On this basis,it puts forward research assumptions and constructs multiple regression models.Finally,based on the data of information technology listed companies in 2012-2019,through empirical analysis,this dissertation examines the impact of salary incentives of executives and ordinary employees on enterprise performance,and discusses whether internal control has a moderating effect between them.In addition,the above model is further regressed by dividing property rights.The results show that:(1)the salary incentives of executives and ordinary employees have significantly promoted the improvement of enterprise performance,and the salary incentives of executives are better than those of ordinary employees;(2)Internal control plays a positive role in promoting the incentive effect of executive compensation and that of ordinary employees;(3)Further analysis of property rights shows that the salary incentives of executives and ordinary employees in state-owned enterprises are slightly better than those of enterprises.At the same time,it is found that internal control can actively promote the performance of salary incentives in nonstate-owned enterprises.This study has two theoretical contributions: First,it enriches the research on the impact of salary incentives on enterprise performance by comparing the salary incentives of executives and ordinary employees;Secondly,internal control is selected as the adjustment variable to discuss its influence on the salary incentive effect,which expands the related research of internal control.In practice,this dissertation provides a realistic basis for information technology enterprises to formulate the salary system and how to strengthen the salary incentive effect by improving the internal control system.This study also provides suggestions for information technology enterprises with different property rights to formulate employee compensation incentive mechanism and improve internal control level.