Influential Factors Of Executives Equity-Based Revenue In Chinese-Listed Companies

Abstract

In the Chinese context of economic reform and restructuring to establish the modern corporate system, new models of executives equity-based revenue are tested. Stock option income is currently becoming a critical part in the whole package offering to the executives. In this research, we examine the influential factors of executives equity-based revenue in 127 Chinese-listed companies. It appears that business performance is positively related to executives equity-based compensation, that there is no significant correlation between executives equity-based compensation and corporate size, that industry is an influential factor of executives equity-based compensation, and that there is no significant correlation between executives equity-based compensation and tenure. Based on these findings, we suggest future improvements to establish a healthier equity incentive system in China.