| Project Title: | Research on the Influence of Management Incentive on Enterprise Performance of Listed Companies in Chinese Pharmaceutical Manufacturing Industry |
| Author: | Mr. Zhu Shiming |
| Advisor: | Dr. Zhang Li |
| Degree: | Master of Business Administration |
| Major: | Marketing Management |
| Faculty: | Graduate Schools |
| Academic year: | 2022 |
| Url: Published: |
Journal of Wisdom Political Science Journal of Wisdom Political Science and Multidisciplinary Sciences, Vol. 5 No. 3 (2022): May – June 2022 |
Citation
Zhu Shiming. (2022). Research on the influence of management incentive on enterprise performance of listed companies in Chinese Pharmaceutical Manufacturing Industry. (Master’s independent study). Bangkok: Siam University.
Abstract
Many factors have promoted the rapid development of the global pharmaceutical industry. In this era of increasingly fierce competition, how to motivate the management to play a role and seek greater economic benefits for the enterprise has become a concern of enterprise stakeholders. Equity incentives and compensation incentives are companies that stimulate the enthusiasm of the management by giving the management a certain shareholding ratio or salary. These two incentives firmly link the interests of the management with the performance of the enterprise. The better the development of enterprise performance, the greater the self-interest of management will be. This is also a common incentive method in the development process of modern enterprises.
Whether management incentives have a positive impact on firm performance or not was the purpose of this study. Based on human capital theory, stakeholder theory, and principal-agent theory, this paper selected the data of 152 listed companies in China’s pharmaceutical manufacturing industry from 2017 to 2021 using the combination of qualitative and quantitative methods to study the relationship between management incentives and corporate performance. Among them, the dependent variable was corporate performance, and the independent variables were management incentives, financial leverage, corporate asset size, equity concentration, corporate growth, and corporate nature. According to the analysis, the following conclusions were drawn: 1）there was a significant positive correlation between management incentives and corporate performance in listed pharmaceutical manufacturing companies；2）there was a significant negative correlation between the financial leverage of listed companies in the pharmaceutical manufacturing industry and corporate performance；3）there was a significant positive correlation between equity concentration and corporate performance of listed companies in the pharmaceutical manufacturing industry； 4) there was a significant positive correlation between the growth ability of listed companies in the pharmaceutical manufacturing industry and corporate performance. Finally, by summarizing the conclusions, four suggestions were put forward to formulate a reasonable management incentive plan, rationally use the financial leverage of the enterprise, reasonably adjust the degree of equity concentration of the enterprise, and rationally formulate a performance appraisal index system.
Keywords: pharmaceutical manufacturing industry, management incentives, enterprise performance.
Research on the Influence of Management Incentive on Enterprise Performance of Listed Companies in Chinese Pharmaceutical Manufacturing Industry
Master of Business Administration (International Program), Siam University, Bangkok, Thailand