Empirical Research on Executive Incentives and the Corporate Performances of Chinese Listed Real Estate Companies

With the deepening of economic globalization, the impact of executive incentive on corporate performance attracts more and more attention. In this paper, based on the data of Chinese listed real estate companies in recent years, the study highlights the correlations between executive incentive and corporate performance by empirical research methods. To quantify the executive incentive, the ratio of managerial ownership and the sum of senior managers’ annual payment are selected. According to the results of regression analysis and robustness test, the conclusion can be drawn that corporate performance is positively related to executive incentive. Meanwhile, the study shows that equity incentives in Chinese listed real estate companies are not perfectly functional. Finally, there are several specific suggestions about executive incentive for Chinese real estate companies.