An Empirical Research On The Top-management's Compensation And Enterprises Performance Of Listed Companies In Hubei Province

Top management is the key factors to the surviving and development of an enterprise. As for the reason, top management incentive is one of the most key problems among the modern firm theories. Especially, top management compensation is the core problem in the academy research area. As it is the important component of the incentive system. The top management compensation incentive is connected with the firm reform closely. So it is meaningful and important to describe the current situation and find the drawbacks in designing. It can provide the theory foundation for the designing of the top management compensation incentive system. Given the"central section growing up plan"proposed by the nation, this essay concentrates on the relationship between the top management compensation and the enterprise's performance in Hubei province, which eliminates the effects of the section factors. It hopes that it can offer some theory principles in designing the top management compensation incentive system for listed companies in Hubei province.The essay expounds the basic theories on the top management compensation incentive systematically. Based on the summarizing of the empirical research on the relationship between top management and firm's performance, it studies the relationship and the probable factors which affect the relationship in listed companies in Hubei province.Firstly, the essay establishes the research method and content on the basis of the former empirical research. It focuses on three problems as follows: what is the current situation and relationship between the top management compensation incentive and the enterprise's performance in the listed companies in Hubei province? Which factors affect the relationship, and how? What aspects will be considered in optimizing the designing the top management compensation incentive system in the listed companies in Hubei province?Secondly, in chapter II, the essay expounds the relative basic theories on the performance compensation incentive which is the foundation of the designing principles. Thirdly, based on the above, the essay constructs the proving frame and proposes relative hypothesis in chapter III. In chapter IV, in order to answer the question the first and second problem, it demonstrates the empirical test on the relationship and main factors affect the relationship between the top management compensation and the enterprise's performance considered listed companies in Hubei province as the objects. In the end, it proposes some optimizing suggestions about principles in designing the top management compensation incentive pertinently for listed companies in Hubei province.