Empirical Research On The Correlation Between The Excutive Remuneration And Performance Of Listed Companies

In the modern enterprises, the top managers are the key policy-makers who take on the responsibilities of making some significant policies including strategic management. They play a core role in the development of enterprise. Excellent top executives have been targets whom enterprises competing for intensively. Reasonable compensation has such functions as raising achievements and encouraging creativities. This paper studies the relationship between the salary of top managers and enterprise's achievements by using statistical description analysis and hypothesis testing analysis.The results show:from an overall perspective, there is a significantly positive relationship between the top executive salary and the listed company's performance. And they have a significantly linear relation. The relation of top-management salary of listed companies at different locations and enterprises performance is significant positive correlated, but found that the more developed regions the listed companies locate, the smaller the correlationship is, that means the incentive results are small. By considering the scale of corporations, the top executive salary and the listed company's performance are positive correlated. But as the listed company size increasing, the company's executive pay impacts on performance smaller.This paper includes five parts.The first part is the introduction:the emolument situation of the executives in our country is summarized and analyzed; it is also mentioned that the executives play a central role in the listed company; the importance of salary incentive to executives and the state of the executive pay-corporate performance relationship are investigated; a literature review on executive pay is offered. On that basis, the research significance and innovation of this paper are presented.The second part is the basic theory and relevant concept definition:the effect of executive pay on corporate performance has been analyzed theoretically. The compensation theory and the influence of compensation on the behavior, effort degree of executives and corporate performance are stated. The relevant concepts are also defined. So that lay a foundation for building the executive pay influence on corporate performance model.The third part is the research and design:First, the sample and variation are selected. Second, the specific research method is raised. The third, the proper assumptions are made.The forth part is the empirical analysis of the executive pay influence on corporate performance. The SPSS is used for data processing. The descriptive analysis method is adopted for the current situation of sample corporate performance and executive pay. The influence of region and scale factors on the executive pay-corporate performance relationship is discussed in detail. The regression model is established under various influence factors conditions and the fitting degree is studied.The fifth part is the empirical results and policy recommendations. Based on the empirical results, we make more in-depth discussions on the relation of executive compensation and corporate performance, trying to find certain regularity from these conclusions, and make a further analysis of different factors, which cause the different effects of reasons explained. Mechanism, provide a newer and better direction for practice.