A Study on the Effect of Executive Incentives on Corporate Performance of Chinese Listed Companies

Based on existing theories, this paper proposes the hypothesis of the effect of executive incentives on corporate performance. The financial data of Chinese A-share listed companies from 2013 to 2023 are taken as samples, and empirical analysis is conducted by constructing a regression model. The results show that (1) there is a significant positive relationship between executive compensation incentives and corporate performance; (2) executive equity incentives also show a significant positive relationship with corporate performance; and (3) whether it is compensation incentives or equity incentives, the positive effect of executive incentives on corporate performance is more pronounced in non-state-owned enterprises compared to state-owned enterprises.