This paper empirically examines the relationship between compensation incentive, equity incentive and enterprise performance in executive by selecting relevant data of listed companies liquor enterprises from 2010 to 2020. The results show that can significantly positively affect performance, while has no significant impact on performance.

There has been widespread public debate over the effectiveness of corporate governance practices in firms. One of the main concerns is that CEOs take advantage of accounting discretion to misreport financial information and to extract excess compensation (rents) from shareholders. Thus, the connection between CEO compensation and financial misstatements has received considerable attention. Due ...

The design of incentive compatible executive-compensation policies is a crucial element for firms that seek a competitive advantage in an effort to maximize owner wealth. In this paper, we examine the relationship between executive compensation and measures of firm performance that capture the economic profit earned by the firm, namely, EVA and MVA. We test the hypothesis that after controlling...

We examine the interaction between risk (uncertainty) and production efficiency in determining pay-performance sensitivity in optimal executive compensation. Particularly, we show that the risk-incentive trade-off is exacerbated (attenuated) as production efficiency increases when the efficiency level is greater (less) than the level of compensation risk. This result suggests that the optimalit...

This paper examines the determinants of executive compensation in Chinese banking during 2005–2012. Using the fixed effects panel, 2SLS and dynamic GMM regressions, I find that there is no significant positive pay performance relation, and CEO power does not necessarily exhibit higher levels of executive compensation. However, I show that ownership structure (measured by ownership concentration...

Incentive-based pay is rational, intuitive, and popular. Agency theory tells us that a principal seeking to align its incentives with an agent's should be able to simply pay the agent to achieve the principal's desired results. Indeed, this strategy has long been used across diverse industries-from executive compensation to education, professional sports to public service-but with mixed results...

CIRANO is a private non-profit organization incorporated under the Québec Companies Act. Its infrastructure and research activities are funded through fees paid by member organizations, an infrastructure grant from the Ministère de l’Industrie, du Commerce, de la Science et de la Technologie, and grants and research mandates obtained by its research teams. The Scientific Series fulfils one of t...

Recently, numerous firms adopted incentive compensation plans for their outside directors. This study examines empirically the hypothesis that the adoption of such plans helps to improve the adopting firm’s operating performance by aligning the interests of directors and shareholders. The empirical tests do not reveal a significant link between the adoption of director incentive plans and opera...