The Impact Of Executive Equity Incentive On Corporate Performance

Affected by the development brought by the current international environment,different countries are facing different degrees of economic development defects.It is urgent to accelerate the process of social transformation.Some of the practical defects we have tried to detect are improvements in the field of economic structure.However,looking at China,This makes more strict demands on the management and management of a number of domestic listed companies.Agency problems emerge one after another,seriously affecting the development of enterprises.There is a close relationship between it and executive incentive mechanism.Many enterprises are committed to the rational allocation of resources by using the role of the latter.Currently,there is much space to optimize the area of Chinese market economic development,and there is still room for improvement in the construction of the capital market economic system;There is still a lot of room for optimization of the external environment,and some enterprises have not blindly made subjective judgments in combination with the development reality and market demand.At present,the implementation of executive incentive schemes is relatively limited,It is unfavorable to the strategy target of the company.The traditional mechanism management has not been able to satisfy the demand of the company’s development.It is necessary to set up the modern corporate system.However,the system has certain development defects,which can easily lead to the separation of the two powers.The management staff should establish a perfect performance mechanism in combination with the current development,To analyze the problem effectively,from the perspective of the manager and the owner,and carry out the sustainable development idea,will have an important influence on Listed Companies’ investment performance.In order to solve the subjective deviation in theory,this paper summarizes the conclusion based on a series of methods such as correlation analysis.In the process of analyzing variable factors,it also considers the executive incentive scheme formulated by the company,The relation between executive motivation and corporate performance is researched,and various explanation variables are added for the establishment of regression model.In this process,Executive motivation is very important in the development of corporate performance.In this paper,robustness and endogenous testing are taken as preconditions to ensure the objectivity and fairness of the results as much as possible.When determining the research variables,the internal control is mainly taken as the research subject,the thinking mechanism is rebuilt,the adjustment and influence significance of the research subject is analyzed from the perspective of innovation,and the interaction relationship between the remaining two variables,that is,executive motivation and performance,is explored.In accordance with the related theory study content,it can be seen that the current research believes that there is a positive correlation between executive equity incentive and investment performance,and that the better the effect of executive equity incentive,the higher the investment performance can be achieved.Therefore,during the development of the company,appropriate executive equity incentive measures that meet its actual needs can be selected based on the agency problems raised by the investors,so as to promote the efficient development of the enterprise.If the investment performance shows an upward trend,the enterprise value will also increase.Second,Investment performance will be influenced not only by internal control quality but also by equity incentive,but also by the positive influence.Therefore,in the process of deciding the investment plan,the enterprise can positively change the internal control plan,solve the agency conflict problem as much as possible,and achieve the purpose of improving the investment performance level;Third,The quality of internal control and the motivation of managers’ equity have a positive effect on investment performance,and the former has a positive influence on the latter.From a deeper analysis,if the former shows a strong development trend,the latter will promote the development of investment performance more strongly.Performance level has a very critical impact on the accumulation of enterprise experience and the exertion of competitive strength.Many enterprises set it as their own strategic goal and constantly strengthen supervision to ensure that senior managers can implement management behaviors in this area,Promote the company’s long term development,and do whatever it takes to expand the company’s market share.However,there are a lot of shortcomings in the existing ICS.and There is still plenty of space to optimize in the future.