Abstract: Based on the perspective of synergistic effect, the paper employs the classical Basu model to thoroughly analyze the relationship between executive compensation incentives and corporate accounting conservatism, and examines the effect of executive power on the above relationship. The empirical results illustrate that the relationship varies with the degree of executive compensation incentives, that is, moderate executive compensation incentives is positively related to accounting conservatism, while excessive one results in lower accounting conservatism; under the influence of power allocation, when executives are chairman or holding shares, the increase of executive power will correspondingly enforce the relationship between executive compensation and accounting conservatism. Therefore, in order to enforce the synergetic governance effect of executive compensation incentives and accounting conservatism, it is highly worth more attention to the incentives intensity and the effect of inner power allocation structure.

Key words: executive compensation incentives, executive power, accounting conservatism, Basu model