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Keywords

advanced manufacturing, executive compensation, financial performance

Abstract

Executive compensation is a double-edged sword to the enterprise,it will increase the cost of the enterprise on the one hand,reduce the profit of the enterprise,but at the same time help to improve the enthusiasm of the executive,increase the economic benefits of the enterprise.Using the data of 150 companies from 2015 to 2018 as the research sample,this paper adopts the multi-regression analysis method.This paper studies the relationship between executive compensation and financial performance.The results show that there is an inverted U-shaped relationship between the proportion of executive compensation in the compensation of employees and the financial performance of the listed companies in advanced manufacturing industry.However,there are also differences in the turning point of inverted U-shape among enterprises of different sizes and different levels of debt.The purpose of this study is to determine the reasonable proportion of executive compensation for enterprises,and to maximize the positive energy of executive compensation in the promotion of corporate financial performance.

DOI

10.16315/j.stm.2020.04.013

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