An Empirical Study On The Contributing Factors Of Executive Compensation Of The China's Listed Real Estate Company

Along with establishment of the modern enterprise system in the country and the reveal of the executive compensation data, executives of the incentive problem has become academic and practical industry in general topic of concern. Among them, pay as the most important means of encouraging executives, scholars have been a hot topic. Reasonable pay and incentive mechanism can effectively improve the work of executives enthusiasm and efficiency, to avoid the agent failure, brain drain and other negative phenomena. China's economic reform has already gone through 20 years of history, the modern enterprise system framework has been largely established, but the company's senior management from the pay system is still a far cry from the requirements of a market economy. How to use an effective incentive and restraint mechanisms give full play to pay the manager's role has attracted extensive attention, thereby affecting the impact of executive compensation factors improving their incentive mechanism to promote enterprise development has an important role. In this paper, the relevant theory and some research at home and abroad based on the results, through the empirical analysis reveals China's listed companies pay executives what factors affected, as well as their relationships to what extent, for in-depth understanding of the remuneration of senior executives to build further study the situation platform for listed companies to develop a reasonable pay incentive system to provide reference and reference.Foreign and executive compensation research about the factors affecting an early start to develop more mature. This started as early.as its economic and related disciplines and theories to develop a more complete kind of practical research methods are more relevant. Factors affecting executive pay research and development of a simple factor analysis from the earliest to the later multi-factor analysis; from purely theoretical studies to examine a larger number of empirical studies and integrated studies; ranging from simple single-variable models to consider research and development to the take into account a comprehensive model of multivariable. In this process, the more scientific approach to be adopted, along with a wider range of variables related to economics, management theory has been the development of empirical testing, enrich and improve the system for the study of the influencing factors. The most representative study of the first variable is the size and performance, followed by equity structure of corporate governance variables become the focus of the study, in a comprehensive study of academics, companies and corporate executives the specific characteristics of the object of study is also important, of course, There are other disciplines in order to pave the way for basic research, such as social factors, tax factors, and so on. In addition to a more consistent view of the size of the variable positive things, that its executive compensation and has a positive correlation, while for other variables of the empirical results also there are more controversial.The overall level of domestic research is not high, in this regard with the domestic economy, the market maturity stage of development and theories related to the research results on the other hand, foreign internal reference and digestion also need a process. Factors affecting the purely empirical approach is used in particular articles and rare, more executive compensation factors are described in the study included the company's performance involved, and other studies are a small number of single or one-class variables discussion. Some scholars on the preliminary consideration of the impact of multi-variable, but the question is obviously missing variables or an integrated model for analysis of variables related issues. Therefore, no matter the depth or breadth, the domestic research in this area there is still much room for the improvement.This article uses empirical research methods, complemented by the necessary theoretical explanation and description; from both theoretical and empirical aspects of real estate listed companies pay executives a comprehensive analysis of influencing factors. Among them, in the empirical context, the article chosen for 2006-2008 in Shanghai and Shenzhen listed real estate companies as a research sample, the sample with Eviews software company's executive compensation factors were analyzed. Full-text is divided into six chapters:Chapterâ… :Introduction. This study describes the background, research aims to study the basic methods, as well as the basic framework of this article.Chapterâ…¡:Theoretical basis and literature review. Described the relevant concepts defined, reviewed the relevant research literature at home and abroad, by comparing the domestic research found that the overall level is.not high, in this regard with the domestic economy, the market maturity stage of development and theories related to the other foreign research results of the internal reference and digestion also need a process, the factors affecting the purely empirical approach is used in particular articles and rare, more executive compensation factors are described in the study included the company's performance involved, Other studies are a small number of individual or a single class variable on the discussion. Some scholars on the preliminary consideration of the impact of multi-variable, but the question is obviously missing variables or an integrated model for analysis of variables related issues. Therefore, no matter the depth or breadth, the domestic research in this area there is still much room for the improvement. In addition, this chapter also describes the principal-agent theory, human capital theory, incentive theory and the theory and then manager, built the theoretical basis for this article.Chapterâ…¢:Variable research and assumptions. This chapter, empirical and normative research at home and abroad relevant conclusions, combined with the characteristics of the real estate industry, as well as eliminate the variables which are difficult to collect data, characteristic variables from the company, executives personal characteristics variables and corporate governance variables discussed three aspects of this paper, the variable selection problem, and puts forward the hypothesis.Chapterâ…£:empirical research and design. Mainly describes the variable indicators, data collection and self-selection criteria variables, and then select empirical analysis model research purposes. Selected articles from 2006 to 2008 in China more than 60 real estate companies listed on the company's more than 180 samples to be interpreted as a variable pay as high-ranking officials, the company characteristic variables, personal characteristics variables executives, corporate governance variables as explanatory variables to build the line regression model to analyze the real estate executives of listed companies pay factor. Among them, the company characteristic variables consist primarily of corporate performance, company size, company locations, four aspects, including senior executives personal characteristic variables of age, the proportion of two aspects of executive ownership, corporate governance variables include ownership structure,two part-time staff, stock concentration, the proportion of independent directors in four areas.Chapterâ…¤:Empirical tests and analysis. Including the variable indicator of the descriptive analysis, correlation test, regression test results and statistical analysis, empirical results with the original assumptions were analyzed. The empirical results show that between firm size and CEO pay has shown a significant positive correlation; performance variables (ROE) and pay a positive correlation between the regression verification, are also significantly higher; regions of different impact on real estate executives pay executive compensation in developed regions than in other regions; the real estate industry executive pay is related to their age, but correlation is not very significant; two part-time post of executive compensation and a significant negative correlation There is a contradiction with the assumption of this article; real estate proportion of state-owned shares of listed companies and executives pay a negative correlation exists between weak negative correlation; executives Ownership and showed positive relationship between executive pay, p value is more obvious; the proportion of independent directors and executives remuneration weak positive correlation exists, and assumptions are contradictory.Chapterâ…¥:Summary. First, the main conclusions of the study summarized in this paper, and accordingly put forward relevant policy measures and recommendations, concluded that the deficiencies in this study and future research directions.The innovation of this paper may be manifested mainly in the following areas: research methods, this paper adopts a comprehensive model law to systematic approach to study the factors affecting executive compensation, to a certain extent, to avoid the majority of previous studies used single-factor Analysis of one-sided approach; selection of variables in the study, this paper on the basis of previous studies, comprehensive selection variables and in accordance with the characteristics of the real estate industry to join a number of variables; Finally, at the conclusion of the study, the results of the analysis of this article with the former industry-wide results of the analysis were different, with some of the characteristics of the real estate industry.In this paper, a combination of theory and empirical research methods, the real estate listed companies pay executives a comprehensive analysis of influencing factors. Although I do everything possible to gather information and pay attention to the use of scientific methods of analysis, but because of information obtained by the level of operability and my limitations, this study of the following shortcomings:1. In the research sample, the sample size of this article as a whole is still relatively limited. Furthermore, although the paper chose to 2006-2008 data, but does not do time-series analysis, which was mainly due to small sample size, the annual data of the regression analysis result is not satisfactory. In data collection on the current domestic listed companies as the basis of financial data and executive compensation data collection and there are many irregularities in the Department, and thus the final results of the analysis would result in the inevitable impact.2. The choice of variables in the study, this article still missing variables problem. Although this variable has been involved in the company's characteristics, personal characteristics executives, corporate governance and so on, but due to some non-quantifiable variables, as well as some of the data collection difficulties, the existence of missing variables is inevitable, Such as real estate executives to expand capacity and the risk of social indicators.3. In the research model, this paper only a simple multiple linear regression model, without taking into account part of the explanatory variables that may exist between executive pay and the non-linear relationship.