The Impact of Equity Mix and Executive Incentives on Corporate Performance

Abstract

On the background of mixed ownership reform, the equity mix has an in-creasing impact on corporate performance. Our research selects the panel data of 620 Shanghai and Shenzhen A-share manufacturing listed companies from 2015 to 2019,and constructs a model of the mediating effect of “equity mix-executive incentives-corporate performance” to test the impact of equity mix on firm performance, and further explore the mediating effect of execu-tive incentives between the equity mix and firm performance. Research shows that: the “U”-shaped relationship between equity mix and company perfor-mance is confirmed, executive compensation incentives have a partial me-diating effect between equity mix and firm performance, and executive equity incentives have a complete mediating effect between equity mix and company performance.