Perks Of Managers, Characteristics Of Board Of Direcotrs And Corpoarate Performance

Nowadays, managers'perks is becoming a common phenomenon in Chinese companies, but there is not very more empirical analysis about this area. Compared with foreign countries, most part of managerial compensation in china is lower, whether managers' perks as a motivate mechanism can increase managers'positive and improve corporate performance? And whether managers' perks as a part of agency cost is one of the main factors which impact the corporate performance? Whetherless, different corporate governance situation has different effect on perquisites active. Board of directors is an important factor in corporate governance, whether the characteristic of board of directors can have influence on perquisites? All above questions are the important points of this paper.The first part of this paper defines the perquisites, analyzes the reason of perquisites'origin and discusses the background and situation of perquisites in China, at last compare the situation of perquisites in China with foreign countries from three aspects. The second part discusses and analyses the empirical researches on perquisites in China: the first section reviews the documents of empirical analysis on managers'perks in China, which are few. Because the empirical research on this area is later than foreign countries. I list all the empirical documents on perks and analyze the objective and directions of these documents; the second section compares and analyzes the variable of perk between China and foreign countries; the third section compares and analyzes the data source about managers' perks between China and foreign countries. The third part researches the relationship between managers' perks and corporate performance. First, I review the related theories on perks and corporate performance and issue my hypothesis according these theories. Second, design the model and variable for this paper regards with related documents. Third, receive the data form Chinese listed companies from Shenzhen and Shanghai stork marketing. At last, this paper draws a conclusion after put data into the model. The forth part deals with the relationship between managers'perks and characteristics of board of directors, analysis whether the monitor mechanism of board of directors can impact perquisites from the view of agency problem. Different characteristics of board of directors form different monitor levels. I set 6 characteristics of board of directors as study object and analyze the relationship between perks and these characteristics. Firs issue hypothesizes and the put data into the model to draw the conclusion. The last part of this paper gives some recommendations according with conclusions on manages'perks above and lists innovation and flaws of this paper.The main conclusions of this paper are as follows:1. Relationship between managers'perks and corporate performance:perks of managers can motivate corporate performance.2. Relationship between managers'perks and characteristics of board of directors:the monitor mechanism of board of directors can not constrict the amount of perks of managers, which is less than expected.(1) Board size is significantly positively related to Perks. The larger size of board, the more perks;(2) Share proportion of board is significantly positively related to perks. The more independent directors in the board, the larger perks;(3) Separation of chairman of board and CEO is negatively associated with perks significantly;(4) Meeting frequency of board is positively related with perks, but not significantly;(5) Compensation of board is positively related with perks. The larger pay for directors, the more perks;(6) Independent directors works in the place which the company in, the perks of this company is lower.The innovation of this paper includes:1. This paper provides a general overview of perks of manager in China from three aspects and reviews the empirical study on perks in China comprehensively and compares the gap of empirical study on perks between China and foreign countries.2. This paper according to agency theory and China's real condition, proposes a new hypothesis of the relationship between mangers'perks and companies' performance.3. This paper studies the relationship between perks of managers and characteristics of board of directors. And this paper is the first one to test this relationship.