A Study On The Relationship Between Executive Compensation And Firm Performance Of China's Real Estate Listed Companies

Long-term since, the study of executive compensation and company performance has been the focus of scholars home and abroad, but there is no agreement concluded. The study of executive compensation and company performance can optimize executives'salary motivation mechanism, promote company's development. The healthy development of real estate is one of the guarantees of the social progress and economic development. Therefore, study on the relationship between executive compensation and company performance of China's real estate listed companies has very important significance.Based on the theoretical analysis, the real estate listed companies in Shanghai and Shenzhen stock market as samples, an empirical study about the relationgship between executive compensation and company performance was done in this paper, and some suggestions were given to advantage executives'salary motivation of China's real estate listed companies. According to the study contents and characteristics, this paper mainly uses the quantitative analysis and qualitative analysis, combining normative research and empirical research method.Firstly, based on the literature review at home and abroad, a study opportunity of this paper was proposed. While the key concepts of executive compensation and company performance were defined, theory and evidence were found. The principal-agent theory, human capital theory and motivation theory were taken as the theoretical support of this paper.Secondly, after reviewing the present basic condition of the real estate listed companies in China, data analysis was done about the status of executive compensation and company performance, and other factors which might affect the executive compensation were also briefly discussed.Thirdly, on the basis of theoretical and current conditional analysis, variables of empirical study were chosen, research hypotheses of this paper were defined, and research models were also constructed. Then, empirical study was done about the relationship between executive compensation and company performance of China's real estate listed companies, the results were also discussed.Finally, according to previous theoretical analysis and empirical results, related suggestions were pertinently put forward about advantaging executives'salary excitation of China's real estate listed companies, such as improving the existing motivation model and executive performance evaluation system, establishing and perfecting executive shareholding system and strengthening the comprehensive information disclosure of executive compensation.