Comparative Analysis Of The Cross-listed And Non-cross-listed Companies Executive Compensation And Corporate Performance

With the development of economic globalization, capital globalization makes global capital flow more quickly. The development of enterprise increases the need of capital. Cross-listing is becoming a more popular mode of financing for domestic listed companies. Due to the overseas securities market has a long history of development, All aspects of its regulatory rules are also maturing, with particular emphasis on protecting the interests of outside investors. Outside stock market has a very strict supervision, on the other hand also promotes corporate governance of listed companies, optimizes capital structure and start up a reasonable remuneration committee to strengthen the supervision of executive pay to make their interests identical whit outside shareholders, mitigating principal-agent problem. Since the establishment and development of China's capital market has just begun, there is no perfect system of market regulation and listed companies have no perfect level of corporate governance. Principal-agent problem of listed companies in our country is very prominent and there are conflicts between interests of company executives and investors. As our listed companies have cross-listed abroad, they will be subjected strict regulatory laws and they have to optimize their level of internal corporate governance, establishing a rational system of corporate executive pay, also strengthening the external protection of outside investors'interests. This paper is to study the correlation between executive pay and company performance about cross-listed companies and non-cross-listed companies, indicating that cross-listed has a positive importance on building reasonable salary system in our listed companies.When sorting out literatures about executive pay and company performance and cross-listed, I find that some scholars make only study on correlation between executive pay and company performance and other scholars make study on motivation factors of cross-listing and study influence of cross-listing on corporate governance of listed companies. The study of this paper combine the abeve two and study influence of cross-listing on corporate governance from the view of Executive pay and company performance, highlighting some shortness existing in establishing an effective system of executive pay and confirms positive impact of cross-listing on listed companies. On the basis of previous studies, this paper select four commonly used financial indicators to measure company financial performance and select the sum of top three executive pay as the dependent variable. This paper use spss statistical software to test the relation of executive pay and company performance. Empirical studies have shown that the correlation between executive pay and company performance of cross-listed companies is stronger than the listed companies in China. Finally, this paper puts forward some suggestions about establishing reasonable salary system of listed company and optimizing the level of corporate governance in China in order to give some important instructions about building high level of corporate governance in the future...