SHS Web Conf.
Volume 165, 2023The 2nd International Conference on Creative Industries and Knowledge Economy (CIKE 2023)
|Number of page(s)
|E-commerce and Economic and Trade Marketing
|03 May 2023
Does foreign direct investment promote business performance? -- From the perspective of executive compensation incentive and promotion incentive
1 School of Economics, Wuhan University of Technology Wuhan, Hubei
2 School of Economics, Wuhan University of Technology, Wuhan, Hubei
Based on the data of Chinese listed companies from 2015-2020, the impact of foreign direct investment on the business performance of Chinese listed companies is explored from the perspective of executive compensation incentives and promotion incentives. The study finds that FDI has a catalytic effect on the business performance of firms. With regard to the mechanism of action, FDI promotes the improvement of business performance by enhancing executive incentives, and the findings of this paper have practical implications for guiding foreign investment to play the role of corporate governance and improve business performance.
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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