The Relationship between Incentive Structures and Financial Performance among China, Vietnam and Aus

• 作 者: Wun-Hong Su
• 机 构: School of Accounting University of Technology,Sydney
• 出 处: 商管创新教学研讨会
• 发表日期: 2009年10期
• 关键词: Incentive Structures Financial Performance Culture Value

　　China & Vietnam provide an interesting setting to evaluate the relation between incentive structures and financial performance due to conflicting cultural values which make it unclear whether group or individual incentive structures will result in higher performance.An experimental research design is used with a total of 200 subjects from the three Australian universities.Data is collected from 50 subjects who were born and educated up to high school in the Peoples Republic of China & Socialist of Vietnam, respectively and compared to the data gathered from 100 subjects bom and educated up to high school in Australia.Financial performance is measured in terms of profitability, which is the primary objective of any profit-making organisation.In the group of China & Vietnam, no statistically significant difference in profitability under an individual incentive structure compared to a group incentive structure was found.In comparison, statistical analysis performed on the Australian data reveals that subjects performed significantly higher under an individual incentive structure, which is consistent with Australian and Anglo cultural values.