Research On The Relation Of Executive Compensation And Compan Performance, Capital Structure In Chinese Private Listed Companies

Since reform and opening-up policy for 30 years, along with the state-owned economy drop out from the general competitive industry gradually, the private economy obtains an unprecedented development opportunity, which has become Chinese important and stable components of the national economy. By the end of 2010, there are more than 1000 private listed companies in Shanghai and Shenzhen A stock market, the development of the private economy has become a driving force of the economic development of China. With the expansion of the scale and the increase of number of private listed companies, the senior executives play more and more important role in listed company. How to motivate managers effectively to maximize the shareholders' interests, which become a hot topic of the academic in the field of accounting, and this has arisen private listed company senior executives'incentive problems. With the development of economy, motivation theory and capital structure theory innovation, which open a new road for researching on senior executive incentive system in private listed companies.This thesis synthesize the results of the previous scholars about senior executive compensation, which discuss the influence factors from two angles, one is the company performance, the another is capital structure emphatically, at the same time considering the company under different scale, the relationship between executive compensation with company performance and capital structure. This thesis will use compensation as independent variable; make company performance and capital structure as dependent variable. In this paper, ROA and cash flow-asset are measured company performance, use debt-to-assets, current debt ratio, long-term debt ratio, interest-bearing debt ratio and non-interest bearing debt ratio, cash to current debt ratio to measure capital structure. Choose the company size as the control variables. Use multiple linear regression model to investigate the capital structure, company performance affect senior executive compensation, conclude finally: Senior Executive compensation in private listed companies is positively and significantly related to ROA, cash flow-asset, current debt ratio, non-interest bearing debt ratio, company size; Senior Executive compensation in private listed companies is negatively related to debt-to-asset, cash to current debt ratio, long-term debt ratio, interest-bearing debt ratio; In different assets size, senior executive compensation is related differently with company performance and capital structure, the coefficient become form positive number to negative number and greater.