A Study On The Correlation Of China's SME Board Listed Companies' Executives Pay Salaries And Corporate Performance

The research on the enterprise executives pay system is a hot topic, this thesis focuses on theresearch on the correlation of enterprise senior managers pay and corporate performance fromboth theoretical and practical aspects. It aims to provide theoretical and empirical basis andsupport to establish and refine further executives pay system.This paper selects the companies listed in Shenzhen SME board before the end of 2005 asresearch samples. It specifically studies the actual results of China's SME board executives oflisted companies pay salaries and incentive mechanism. From the empirical analysis I find that:China's SME board listed companies' senior managers pay salaries expressed by theperformance indicators ROE, does exist positive correlation with the variable, total assets of thenatural logarithm of the size of enterprises significantly. However, the executives pay salariesdoes not show significant positive correlation with other performance indicators and thepercentage of high-shareholdings. From the incentive pay Analysis, it found that only the netasset yield and the executives pay salaries was through the regression coefficient of 5%significant test, performance indicators and enterprise-scale, high-shareholdings variables do notshow significant correlation. Finally, it got the conclusion that the China's SME board listedcompanies have set up the internal incentive mechanism, but poor incentive effect.In the last part of this article, according to the empirical findings and SME board listedcompanies' actual conditions, I make some advices on the salary level and structure, thepercentage of high-shareholdings and companies 'board set up.