Senior Executive Incentives and Corporate EVA Based Performance—A Study Based on OLS Model

Abstract

Corporate performance reflects the operating results, which is closely concerned by the corporate management, owners and creditors, so how to improve the corporate performance is very important. As a major means of corporate governance, incentive system has become the focus of research on whether it can play a positive role in improving performance. This paper examines the impact of salary incentive and equity incentive on corporate performance. Based on the empirical analysis of the data of China’s A-share listed companies in Shanghai and Shenzhen stock markets from 2010 to 2017, the following conclusions are drawn: The two incentive modes are significantly positively correlated with corporate performance respectively, and the relevant conclusions have also passed the robustness test. At the end of the paper, some targeted suggestions are also given.