Abstract
On the background of mixed ownership reform, the equity mix has an increasing impact on corporate performance. Our research selects the panel data of 620 Shanghai and Shenzhen A-share manufacturing listed companies from 2015 to 2019, and constructs a model of the mediating effect of “equity mix-executive incentives-corporate performance” to test the impact of equity mix on firm performance, and further explore the mediating effect of executive incentives between the equity mix and firm performance. Research shows that: the “U”-shaped relationship between equity mix and company performance is confirmed, executive compensation incentives have a partial mediating effect between equity mix and firm performance, and executive equity incentives have a complete mediating effect between equity mix and company performance.
Highlights
Over recent years, “mixed ownership reform” has always been a topic with state-owned listed companies
Can the changes in the equity structure triggered by the “mixed ownership reform” improve corporate performance? What proportion of equity mix must be achieved to achieve the effect of performance improvement? Are executive incentives a intermediary role in equity mix and company performance? At present, in the study of equity mix and business performance, research on the relationship among equity mix, executive incentives and company performance under the background of the “mixed ownership reform” has not been involved
Based on the previous literature about the impact of equity mix on corporate performance and the impact of executive incentives on corporate performance, this paper finds: 1) Most studies on equity mix degree and corporate performance show that corporate performance will improve with the increase in equity mix, and the transmission mechanism and indirect effects between equity mix and corporate performance have not yet been paid attention to; 2) There are few studies about the impact of executive incentives on firm performance based on the background of “mixed ownership reform”; 3) There is no academic research on the comprehensive relationship among equity mix, executive incentives and corporate performance
Summary
Over recent years, “mixed ownership reform” has always been a topic with state-owned listed companies. In 2020, state-owned enterprise reform has entered a critical stage In this context, the impact of equity mix and executive incentives on business. Executive incentives align the interests of management and shareholders by granting managers a certain salary or equity. It can effectively alleviate the principal-agent problem, thereby improving the efficiency of corporate governance. Can the changes in the equity structure triggered by the “mixed ownership reform” improve corporate performance? In the study of equity mix and business performance, research on the relationship among equity mix, executive incentives and company performance under the background of the “mixed ownership reform” has not been involved. This paper can provide some suggestions for the corporate governance of mixed ownership enterprises, so as to promote the improvement of enterprise performance
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
