Research on Impact of the Senior Executive Incentive Mechanism to Financial Performance

摘要

Flowing chart method is employed in the paper. It is thought that technological innovation and institutional innovation are inseparable, as one of the important incentive mechanism, innovation couldn’t create performance itself, but it could stimulate the senior executive's innovative behavior, through the senior executive's leading in enterprise innovation, the enterprise financial performance will be promoted with technological innovation and institutional innovation further. Those enterprises could obtain comparative advantage with the strong competition and the strategy adjusted with the change of the external environment, thus enterprise's financial performance will be promoted.