Abstract
Taken the leading enterprises in the Shanghai and Shenzhen A-share listed companies from 2013 to 2017 as the research samples, the effect of characteristics differences in vertical pair of executives and equity incentives on enterprise performance was empirically analyzed. Constructing multiple linear regression model tested hypothesis. The results show that the interaction between equity incentives and the difference in age of vertical pair of senior executives has a significant negative impact on enterprise performance; the interaction between equity incentives and the difference in education of vertical pair of senior executives has a significant positive impact on enterprise performance.
Highlights
As the most advanced incentive tool at present, equity incentives have been used by many companies around the world and have achieved good results
Hypothesis H1: The interaction between equity incentives and the difference in age of vertical pair of senior executives has a negative impact on enterprise performance
Hypothesis H2: The interaction between equity incentives and the difference in education of vertical pair of senior executives has a positive impact on enterprise performance
Summary
As the most advanced incentive tool at present, equity incentives have been used by many companies around the world and have achieved good results. The reason may be that the role of senior executive equity incentives are not played alone, and affected by factors such as culture, policies, company structure, and the characteristics of managers. By searching a large number of cases of executive equity incentive failures, it is found that many executive incentives are not significant, most of them are mechanically copied according to the theory and not combined with their own characteristics to implement customized incentive programs. In response to this problem, some scholars have previously discovered and studied the regulatory effects of executive characteristics. Jie Bai (2013) found that the level of executive education has a positive interaction on company performance, and the age of executives and equity incentives have a negative interaction on company performance[1]
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