Executive Compensation, Marketing Strategy Tendency and Corporate Growth: Based on an Empirical Test of the Listed Companies in the Real Estate Industry

Based on the data of listed companies in the real estate industry from 2008 to 2010, this paper discusses the internal relations between the tendency of marketing strategy and senior executive compensation, and explores its impact on corporate growth. We empirically find that the higher the executive compensation, the greater the cost of sales and the listed companies tend to adopt aggressive marketing strategies. However, the higher director salary, the lower sales expense. Meanwhile, there is no significant influence between inputs of sales expense and enterprise short-term performance. Besides, whether the investment of sales expense is continuous or not has a different impact on the corporate growth. The paper reveals the mechanism among executive compensation, director salary and marketing strategy, which is of great significance for Corporate Governance in China and management practices in marketing strategy.