Research On The Contributing Factors Of Executive Compensation Of The China Growth Enterprise Market Listed Corporations

As the development of the market economy and the intensive competition of the talent between enterprises, executive compensation as an important incentive mean has become a hot topic for the academic and the practice circle. Especially, the executive compensation scandals made the executive compensation become a hot discussion for the whole society. There have been a lot of researches about the factors contributing to executive compensation in the main stock market, but few researches forced on the same topic about the Growth Enterprise Market (GEM). In the fact, the launch of the GEM has been nearly two years, within this time there are many negative reports about it, such as the executive compensation doesn't relate to the company performance, the founders get too much money overnight, and the executives resign for getting much more money from the stock market. Under the background, this paper makes a theoretical and empirical analysis on the factors that influence the executive compensation of listed companies in the GEM, in hope of being helpful to build the GEM incentive mechanism.This paper studies the factors that influence the executive compensation based on the principal-agent theory, the human capital theory and the managerial motivation theory, combines with both inner and foreign scholars'research fruits, and analyzes the contributing factors of the executive compensation from the angle of the enterprise interior, exterior and manager personal factors. On this basis, the paper focus on the enterprise interior influencing factors on the executive compensation from the empirical view. And then, the paper chose 53 and 167 GEM listed company data of the year of 2009 and 2010, built a multiple linear regression model to explore the influence of each factor on the compensation.The result shows that the executive compensation relates to the company performance and the largest shareholder significantly and doesn't significantly relate to the firm size and other corporate government structure variables. From this result, there is some executive compensation problems could be found in the GEM listed companies, such as the executive compensation unreasonable, the bad effectiveness of the shares incentive, lack of long-term incentive, and the unreasonable corporate government structure and so on. At last, the paper brings the advice looking forward to perfecting the policy of the GEM enterprise executive compensation.