Salary Incentive Research Articles

Research on Corporate Innovation and Compensation Incentives

The optimal contract theory believes that the compensation contract can alleviate the agency contradiction between executives and shareholders. By making the interest goals of executives and shareholders converge, it can enhance the innovation willingness of senior executives to a certain extent, increase the innovation investment of enterprises, and then improve the performance of the company. However, the increase of investment in innovation will not necessarily improve the companys performance, and there may be an endogenous relationship between the two factors, which further complicates the issue of compensation incentive. This article sorts out the relevant literature on enterprise innovation and salary incentive, and discusses the relationship between salary incentive and enterprise innovation and its influence on the endogenous relationship between enterprise innovation and company performance. In addition, the possible influence of executive attachment characteristics on compensation incentive is also discussed.

Introducing professional managers, salary incentive and family business innovation

This paper provides an in-depth discussion of the impact of introducing professional managers on the innovation of family firms for a sample of A-share listed companies in China from 2017 to 2022. The findings show that introducing professional managers in family firms significantly positively contributes to corporate innovation. In addition, the study finds that both equity and cash incentives given to professional managers are conducive to further promoting corporate innovation. The results of this study are of great practical significance for how family firms can rationally utilize professional managers to enhance corporate innovation.

Impact of top executive salary incentive on the quality of environmental information disclosure

The influence of top executive salary incentive on the quality of enterprise environmental information disclosure has not yet been given a clear answer. The article chooses Chinese A-share listed companies from 2011 to 2021 as study samples and empirically analyzes the result of top executive salary incentive on environmental disclosure quality. The research results indicate that top executive salary incentive is beneficial for improving the level of environmental information disclosure. Furthermore, the article uses heterogeneity analysis and moderating effect to analyze the research conclusion. Meanwhile, the level of accrued management was also used as a mediating variable for mechanism analysis, revealing its mediating role between top executive salary incentive and the level of enterprise environmental information disclosure. The research conclusion of this paper not only enriches the research on enterprise environmental information disclosure and top executive salary incentive but also provides relevant policy recommendations for relevant departments, assisting the enterprise management in providing support for decision-making on the level of environmental information disclosure.

Personal income tax and corporate innovation: The key role of inventors’ financial incentives

Despite the importance of the personal income tax around the world, little is known about its impact on innovation. We construct a large database of inventors who patented at publicly listed companies during the 2008–2016 period and exploit the revised Personal Income Tax (PIT) Law of 2011 in China as a quasi-natural experiment to establish the causal effect of the personal income tax on corporate innovation. Using a difference-in-differences identification strategy, we show that a lower personal income tax rate has a significantly positive impact on patent quantity and quality. Further, the revised PIT Law raises the efficiency of R&D activities, induces more explorative innovation, and improves the success rate of patent applications, providing consistent evidence for the intentional effort channel. Moreover, this positive innovation effect is more pronounced in firms with an R&D team that is more sensitive to the salary incentive system, greater innovation dependence, better governance, and firms located in regions with better innovation environments. Taken together, our findings shed light on how inventors and firms respond to decreasing personal income tax rates and confirm that the net return to innovation can be vital to the innovation capacity of firms.

Enhancing the corporate social & environmental responsibility of Chinese energy enterprises: A view from the role of management compensation incentive

Energy enterprises are an important basis for ensuring national energy security and economic development, and their social responsibility is closely related to addressing environmental concerns such as over-exploitation of resources and excessive discharge of pollution. The casual effects of management compensation incentives on corporate social & environmental responsibility are explored based on the panel data of Chinese energy enterprises from 2010 to 2021 using the instrumental variable estimation method. The results indicate that management salary incentives can significantly promote the implementation of corporate social responsibility and environmental responsibility, while the proportion of management shareholding will reduce corporate social responsibility (CSR) and environmental responsibility (CER) activities. In addition, there are obvious industry differences and corporate ownership differences in the effects of management compensation incentives on CSR and CER. The negative impact of equity incentives on CSR and CER is even more pronounced in the electricity and environmental industry, and salary incentives have a greater positive effect on CSR for state-owned enterprises. The study shows that enterprises should focus on the salary incentive of managers and appropriately reduce their shareholding. The government should pay attention to the development of state-owned energy enterprises, and limit the shareholding ratio of management through policies and other incentive systems.

How does managerial ability affect R&D efficiency of emerging-economy high-tech enterprises

ABSTRACT Numerous publications have discussed the nexus between managerial ability (MA) and innovation capability; however, regarding the hi-tech enterprises in transition economies, the nexus between MA and R&D efficiency will be discussed in depth. Considering the data from high-tech listed companies A-shares in Mainland China in 2012–2017, the data envelopment analysis (DEA) window, Tobit panel model, and panel threshold model is utilised to analyse the direct, moderating effects and threshold effect of MA on R&D efficiency of China’s high-tech enterprises. The findings illustrated that MA could significantly facilitate R&D efficiency, and this enhancement effect is interestingly more evident in state-owned enterprises. Enterprise ownership exerts a significant positive moderation effect between MA and R&D efficiency of China’s hi-tech enterprises. Both equity incentive and salary incentive exerts a significant negative moderation effect between MA and R&D efficiency of China’s hi-tech enterprises. In addition, the panel threshold model proved a nonlinear nexus between MA and its R&D efficiency. Based on the abovementioned findings, corresponding countermeasures are proposed.

Equity Concentration, Internal Equity Structure and Company Performance

Abstract Under the background of improving the modern enterprise system with Chinese characteristics and accelerating the development of new quality productive forces, discussing the equity structure and salary incentive mechanism of listed companies in hydrogen energy, an emerging energy source, can provide reasonable and effective development paths for improving the performance of hydrogen energy companies. Based on the research sample of 289 hydrogen energy companies listed on the A-share market from 2013 to 2023, this paper analyzes effectiveness using the coefficient of variation method, conducts empirical research using multiple linear regression, and tests the robustness, endogeneity, and heterogeneity of the results. Research Findings: There is a positive correlation between the shareholding ratio of the largest shareholder and company performance, but it is not significant; the shareholding ratios of the top five and top ten shareholders are significantly positively correlated with company performance, respectively; the shareholding ratio of the supervisory board is significantly positively correlated with company performance; and the remuneration of the supervisory board is significantly positively correlated with company performance.

R&D Investment, Executive Incentive, and Financial Performance in GEM: Based on Three-Stage Least Squares Method

China’s GEM (Growth Enterprise Market, also named as ChiNext stock market) enterprises are mainly small and medium-sized enterprises in the start-up stage, which have high-speed growth. This work uses three-stage least squares (3SLS) based on combines system equation to study the impact of technological innovation investment, executive incentive, and enterprise financial performance. The results show that in China’s GEM enterprises, R&D in the current period positively affects financial performance in 1% significance level. R&D of the lag period has a significant negative impact on the financial performance of the current period. Conversely, the financial performance of the current period has a significant negative impact on R&D. While both salary incentive and equity incentive will improve financial performance, executives seem to value short-term interests MORE. Executive equity incentive has a significant negative moderating effect ownership due to ownership structure in GEM is needed to strengthen the control right. This work proposes a new research horizon in GEM in China, and can help the GEM design an effective management mechanism to improve the financial performance of the enterprise.

Analysis and Countermeasures Research on the Salary Incentive Management Issues of ZZS Logistics Company

Analysis and Countermeasures Research on the Salary Incentive Management Issues of ZZS Logistics Company

Policy Analysis of China's Principal Rank System for Primary and Secondary Schools : Policies, Challenges, and Future Directions

The Principal Rank System for primary and secondary schools has undergone a nearly 30-year pilot phase, representing a significant reform in the realm of education management in China. However, challenges persist in advancing this reform, and the overall progress has been sluggish. This paper conducts a literature-based examination of the policy background and the implementation of the Principal Rank System. During the promotion of this reform, the implementation of the Principal Rank System encounters multiple challenges, including passive responses from certain principals, inquiries into the determination of principal professional ranks, and the varied impacts of the salary incentive mechanism. This paper analyzes these issues and proposes solutions to address them. It is imperative to establish a unified and stringent principal admission system, develop a comprehensive principal evaluation framework, modernize the principal training mechanism, set forth a rational principal ranking system, enhance the principal duty station exchange system, address income disparities among regions, and augment feedback mechanisms following expert reviews to foster holistic educational development.

A Study on the Management of Staff Remuneration in Wuhan Wanda Realm Hotel before and after the Epidemic

In modern human resources management theory, compensation management is the most important and difficult module: the design of the compensation system and its conformity to the needs of the company's development strategy are the most crucial. Its strategy to meet the needs of employees is simultaneously confronted with a complex external environment. Compensation strategies must also be adapted to maintain the effectiveness of the compensation system. This is a central issue facing hotel operators. This paper takes Wuhan Wanda Realm Hotel as the subject of this study and analyses its compensation structure, pay allocation, performance bonuses, benefits package and employee satisfaction. By comparing industry data, we can understand how Wanda Realm Hotel is operating in the face of the epidemic. To understand how to adjust the remuneration strategy, this study explores the problems in the existing remuneration system, applying theories such as two-factor and profit-sharing, through forwarding specific suggestions on salary differentiation, positions grading standard and salary incentive, this research intends to improve the overall salary incentive system of the Wanda Realm Hotel.

Research on the Personnel System Reform of College Teachers in China during the Digital Transformation of Education

Purpose - Deeply implementing the Digital transformation of education is the trend of educational reform and development in the world, and it is also an urgent requirement for China to build a high-quality education system. Based on the current situation of personnel system reform in China’s colleges and universities during the Digital transformation of education, this paper explores the reform of the personnel system in colleges and universities and puts forward reform strategies.
 Design/Methodology/Approach - Based on human resource management theory, this paper studies the problems existing in the reform of personnel systems in colleges and universities during the Digital transformation period, including three problems: imperfect top-level design and lack of digital strategic planning; The degree of data governance is low, and the integration of digital technology and system is not close; The awareness of Digital transformation is weak and digital literacy is lacking. Therefore, we propose reform strategies.
 Findings - This article investigates the optimization of top-level design and deep integration of digital technology and personnel systems. Proposes reform strategies for job appointment, assessment and evaluation, and salary incentive systems. Strengthen the awareness of transformation; Promote innovative reform of the university personnel system.
 Research Implications - This study is of great significance to the personnel system reform of Chinese universities in the Digital transformation of education. Also, it provides a reference for other scholars’ follow-up research.

Research on Compensation Incentive Mechanism of State-Owned Enterprises - A Case Study of Chinese Enterprises

The sudden change in the global economic situation has brought about changes in internal and external market conditions. In this context, China's state-owned enterprises continue to use the traditional salary management model in the salary system, which has many shortcomings in the degree of market openness, distribution mechanism and supervision, which is not conducive to our economic development. It is very important to establish and improve the salary incentive mechanism of state-owned enterprises. A scientific and perfect incentive mechanism can effectively stimulate the enthusiasm and creativity of employees and play a vital role in the healthy and sustainable development of public enterprises. However, with the progress and development of the times, the traditional wage incentive mechanism has exposed some problems that cannot fully function. To this end, this paper analyzes the problems in the current salary management model of state-owned enterprises and finds that performance-based salary incentives actually reflect the wealth created by employees for their work. The consistency of goals among employees, managers and shareholders. Finally, from the existing problems, measures are proposed to improve the current wage management model of SOEs in order to enhance their economic development.

The COVID Care Economy Collapse

Covid19 has created a care economy collapse. As a result of the pandemic, salary incentive programs have been created to encourage Licensed Vocational Nurses (LVNs) to participate in Covid related programs. Many of these programs pay significantly more than the typical salary for LVNs working in home care. As a result, there has become a storage of available LVNs to work with vulnerable populations that need in-home care. Diving into the reasons for the shortage, this study also points to a secondary cause in a salary analysis within Los Angeles County. Results indicate that the average salary LVN salary in LA County is unsustainable for a single parent home. Research has previously shown that keeping people with disabilities in the home results in better outcomes than institutional placement. We will examine what can be done to address the shortage of at home LVN support before there is forced institutionalization.

Whether the Adjustment of Compensation Incentives Within a Company Has an Impact on the Non-Employee Directors of the Company and Brings Profit or Not

The compensation structure plays an important role in a company's non-employee employees. The compensation structure includes an employee's base salary and other incentives. Compensation structure incentives can make non-employees work harder and bring more profits to the company. But after my research not all cases are valid. In a word, according to the data we have obtained so far, the conclusion can be drawn that the salary incentive plan of non-Employee directors cannot play a significant role in some moments.

Incentives and rewards in scholarly communication: the good, the bad, and the possible

Science is a dynamic system with many stakeholders performing different activities, expecting incentives or rewards for research outcomes such as published journal article, a conference paper, a book, a patent, or a research data set. Properly communicated, positive research outcomes tend to lead to new grants, academic promotion, or tenure, so it is important for scientists to remain highly motivated. Motivation usually comes from incentives or rewards given by academic institutions, industry, or funding bodies. The good and bad of the existing reward system have frequently been in focus of interest of researchers and science communicators, but problems with research integrity have shifted the spotlights on the reasons driving scientists to do bad science. Besides support (Jindal-Snape & Snape, 2006), current reward systems lure scientists into doing research that brings rewards and neglect or avoid research that does not. Some scientists choose publishable results over accurate ones (Nosek, Spies and Motyl, 2012) to advance their career, which is has become the major problem in science today.Catillon (2020) identified three key motivators for scientists: a) the intrinsic reward of doing science, b) academic prestige, and c) monetary rewards. The pitfall of the last is that it can drive scientists to do bad science in exchange for money. Such scientists may have conflicted interests, especially if monetary rewards are stipulated by the right kind of results (Catillon, 2020). Zhao (2020) offered another view on types of incentives: 1.) material incentives – the salary incentive; 2.) affirmative incentive – affirming the accomplishment of task, affirming scientific and technological progress and affirming innovative ideas; 3.) cultural incentive; 4.) honorary incentive – linking work performance with promotion 5.) environmental incentive – creation of good office environment including technology advancement.The EU funded project CONCISE, in turn, considers that incentives to engage in science communication arise from social commitment (whether as a way to pay back to tax payers or as an effort to advance democracy, inform society, raise awareness, or promote science). Other motives may include personal or professional benefit (to attract funding, scientific collaboration, broader audience or influence public policies, or to enjoy themselves). Some, however, fear that sharing research data may lose them competitive edge or diminish their credit in specific research.This paper will take a look at major issues about incentives and rewards in science today and how they contribute or affect the quality of scientific endeavour.

The Effect of Medical Choice on Health Costs of Middle-Aged and Elderly Patients with Chronic Disease: Based on Principal-Agent Theory.

(1) Background: The discussion on how to reduce the health costs of chronic disease patients has become an important public health issue. Limited research has been conducted on how chronic disease patients’ medical choice of public and private medical institutions affect health costs. (2) Methods: This study used the panel data composed of the China Health and Retirement Longitudinal Survey (CHARLS) from 2011 to 2018, adopted the quasi-natural experimental research method, and set up a control group and an experimental group that chose public medical institutions and private medical institutions, to analyze the association between the medical choice and health costs of chronic disease patients. (3) Results: Compared with chronic disease patients who chose private medical institutions, patients who chose public medical institutions increased their total cost by 44.9%, total out-of-pocket cost by 22.9%, and decreased the total out-of-pocket ratio by 0.117%, total drug cost out-of-pocket ratio by 0.075%, and drug cost ratio by 0.102%. (4) Conclusions: According to the triple principal-agent relationships, the resource advantages given by the government to public medical institutions, the salary incentive system of medical institutions, and the information asymmetry advantage held by physicians may be important factors for the increase in health costs for chronic disease patients.

Study on the Impact of Teacher Salary Incentives on Teachers' Performance in Higher Education

Teachers in universities are the main force in conducting teaching and research in universities, and are also the main force in cultivating high-level talents. Scientific salary incentive mechanism is the source of attracting talents, enhancing innovation ability and improving core competitiveness in universities. The relationship between university teachers' remuneration incentives and teachers' performance is a hot issue in the field of higher education. This paper analyzes the current situation of research on salary incentives and job performance of university teachers, discusses the relationship between salary incentives and job performance of university teachers, sorts out the main problems of current salary incentives, and finally puts forward policy suggestions to provide theoretical basis for universities to enhance the effect of salary incentives and improve job performance of teachers.

Research on the Construction of Teachers in Private Colleges from the Perspective of Internal Control

Private colleges have become an important force that can not be ignored in the development of China's higher education in the new era. The construction of teachers in private colleges is the key factor whether they can achieve high-quality development. From the perspective of internal control, this paper studies the teacher team of some representative private colleges in Hubei Province. There are many problems in the construction of teacher team, such as the lack of attraction of the introduction of teacher team, the lack of pertinence of the development of teacher team, the lack of support for the assessment of teacher team, the serious hidden loss of teacher team and so on. Combined with the actual situation of private colleges, we should break through the dilemma of teacher team construction from the aspects of school running concept renewal, teacher team construction system innovation, adjustment of salary incentive scheme, comprehensive development of teacher team and cultural construction of private colleges.

Research on the Impact of Listed Companies’ Incentive Policies on Corporate Social Responsibility

Based on research sample on Chinese A-share listed companies that have made social responsibility disclosures (CSR) during the period 2011-2018, this paper explores the impact of listed companies on the performance of CSR under different types of incentive policies. The research results show following: (1) the implementation of monetary compensation incentives for executives can promotes CSR, which means higher monetary compensation rewards for executives has a positive impact on CSR. (2) The company motivate executives with equity has week influence on CSR. (3) The better the salary incentive policy for ordinary employees, whether it is monetary compensation or equity compensation, the CSR will be better. (4) Further research shows when the expected effect of equity incentives for executive by a listed company is insignificant, it can be supplemented by employee equity incentives, which will help improve the company’s CSR. The research conclusions of this paper have a certain reference value for companies to improve the salary incentive system and the CSR.