Research on Executive Compensation Incentives and Corporate Performance - Taking Chinese Listed Companies

Abstract

The study used a secondary research method and conducted an in-depth literature review. The study selected the tenure from 2012 to 2020 and analysed the A-share listed Chinese firms. The existing research studies favoured the impact of executive compensation on corporate performance. The research studies found a close correlation between both factors and found a higher executive pay gap as encouragement for the executives in terms of risk-taking attitude and behaviour.