Executive Compensation And Corporate Performance - From The Shanghai And Shenzhen Empirical Research

Based on several postulates on the contemporary enterprise theory, the thesis discusses inevitability of moral hazard in management, in retrospect of the theory of incentives, the theory of performance evaluation and the theory of the contemporary. And next it comes to an account of the past and the present situation of our state-owned enterprise reforms in allotment system, and analysis of inadequate incentives and the causes of occurrence of insider control. Subsequently, through data deriving from listed companies in china the problem of moral, a positive analysis is carried out to analyze relativity between management compensation and corporate performance. Last, it concludes with some advice of harnessing hazard and a basic conception of constructing synthetic compensation contracts in combination with present condition in china.