Research On The Correlation Between Senior Managentment Compensation And Corporate Performance Of China's State-owned Listed Companies

The competition of market economy is fundamentally the competitions of enterprises, and the competitions of enterprises, in a certain extent, are the competitions between their administrators.As a core decision-making layer, the administrators play a key role for enterprises'development, therefore, the study of administrators'incentive and restraint become hot focus of industry and theorists. How to establish an effective incentive and restraint mechanism to mobilize the enthusiasm of administrator, is an important subject of modern enterprise system, and the basic principles of incentive problems is that administrator compensation and corporate performance are linked.State-owned listed company hold dominant position in our national economic system and the multistage principal-agent feature of property right relation makes the incentive problems of senior administrator more prominent. At present, our country have not promulgate guidelines or guiding opinions about executives'salary system of listed companies, still in the"window guidance"stage. The listed companies have no law to abide, no description to follow, causing a lot of problems. In recent years, the debate on senior management's salary of state-owned enterprises has not been subsided. Since the global financial crisis, Chinese enterprises although suffer a lot, but the salary of senior managements are"calm", but even a rising tendency, causing public media's abnormal attention. So establishing and perfecting the salary system of senior management of state-owned listed company that suit our country conditions is urgent to be solved.Combining the actual situation of China's state-owned listed companies, basing on relevant theoretical research, using empirical analysis as an important method, this article research the correlation between senior management compensation and corporate performance of China's stated-owned listed companies. Main contents as follows:(1)Review research of the field at home and abroad, find this article's entry point, then state modern enterprise system theoty, principal-agent theory, incentive theory and compensation theory, making theory basic for bellowing empirical research.(2)Collect 2005-2008 Shanghai, Shenzhen stock market 694 stated-owned listed companies as sample, research on the correlation between senior management compensation and corporate performance. From the hole sample and consider different stock market, enterprise scale, industry, region, executives shares, asset-liability ratio, and share concentration ratio, firstly analyzed senior management salary's status by descriptive statistics, then using linear regression model to examine the correlation between senior management compensation and corporate performance. About the company performance index variables, using principal component factor analysis, calculate comprehensive performance score as company performance variable.(3)Summarized conclusion empirical research, design thinking and framework of senior management compensation system of state-owned listed companies conforms to China's particular situation, and proposes policy suggestions to construct senior management compensation system of state-owned listed companies conform. By empirical analysis results, the senior management salary present increasing tend year by year, and exists positive correlation with corporate performance, affected by enterprise scale, industry, region, executives shares, asset-liability ratio, and share concentration ratio; the quality of executives shares is less, shareholding ratio is low, and the stock ownership incentive system is still in the initial exploration stage. When design state-owned listed company executive compensation system, firstly explain the content and the principles that should be followed in compensation system, then puts forward the structure design of the executive compensation, which including short- term incentive, long-term incentives and added incentives three kinds. At last propose policy suggestions to construct senior management compensation system of state-owned listed companies conform..