Research On The Relationship Between Management Compensation Incentive And Sustainable Growth Rate Of Listed Company

Based on the literature review of the Principal-agent theory, And combined with sustainable growth theory. This paper use China's Shanghai and Shenzhen securities transactions in listed companies as study samples to investigate the relationships between the management compensation of China's listed companies and the sustainable growth rate of the companies. This paper use Higgins's sustainable growth model to calculate the sustainable growth of listed companies. And then, establish separate linear regression model between the management compensation (and the management ownership) and sustainable growth rate relationship.This study concluded that(1) The top three annual compensation of the management (LN top3),SGR,SIZE,FST,and EXP were multiple linear regression relations.(2) LN (top3) and sustainable growth, company size and management fees were a significant positive correlation ; LN (top3 ) and proportion of state-owned shares were a significant negative correlation.(3) There is a weak positive correlation between management ownership rate (MSR) and sustainable growth rate. However, the R square of the linear regression of MSR and SGR is low.