The Study On Influencing Factors Of Executive Compensation In Listed Companies

As the core of business management, executive's human capital value takes an important role in improving business performance. The modern enterprise separation of ownership and control, results in inconsistent goal between the owner and the operator , and large number of moral hazard and adverse selection problems appeared. Compensation is an important factor to drive executive work hard, and it can avoid the conflict between the owner and the operator effectively, so recently more and more people pay important attention to executive compensation. But what factors influence executive compensation, and what the difference between accounting income and market performance to formulate design the executive compensation contract , Therefore, the study of this paper has important theoretical and practical significance to build the structures of management incentives.In order to solve the above problems, it begins with the review and comparison of empirical research on the relation between managerial comparison and corporate performance home and abroad, then based on data from 2006-2008 of annual reports of China's listed companies, the dissertation investigates the monetary income and equity income of managers using statistical description analysis. In empirical study part, this thesis quotes 2008 listed companies'data as sample, and contracts two compensation models to testify the different influence of these two assessment methods on executive compensation. The empirical studies in the regression results show that executive compensation is effected by many factors, such as business performance, business scale, executive stockholding rate, industry etc. The results also show that both accounting income and market performance have an evident positive effect on the executive compensation, but the accounting income model is better than the market performance model. At last, according to theoretical analysis and empirical study results, we summarize conclusion and give some suggestions to improve executive compensation incentive.Most of the problems in China's enterprise reform and development are related to the management incentive. To resolve this issue will help to consolidate the long-term stable development of China's economy. We hope the study will help improve our corporate finance, and improve the construction of professional managers markets.