Impact Of Management Compensation And Perk On Company Performance

Academic research on corporate governance has been for decades, they studiedand discussed on corporate governance from different angles, using differenttheoretical framework, and found that developing the complete contract betweenshareholders and managers is the key to solve the agency problem. By empiricallystudying on the impact of management compensation and perk on companyperformance, we found that how management compensation impact on companyperformance when exist perk in listed companies, and thus help establishmanagement incentive compensation programs.In the Corporate Governance Research academic background, the researchincorporated the economic and political environment of the state-owned and nonstate-owned listed companies, sorted the principal-agent theory and incentivetheory, and gave a literature review of the relationship of management compensationand company performance, perk and company performance. Subsequently theresearch established a theoretical model, in this model company performance is thedependent variable, management compensation and perk are independent variables,company size, debt ratio, the proportion of controlling shareholders, industry, ageand region are control variables to establish. The research selected the listedcompany’s annual report2007-2010data as the study sample, a total of1715data,including data649state-owned listed companies, non-state-owned listed companydata1066. Using SPSS statistical software, by descriptive analysis, correlationanalysis, multiple linear regression analysis and robustness testing the researchempirically test the hypothesis. Eventually the research found in the state-ownedlisted companies, correlation of management compensation and companyperformance is positive, correlation of perk and company performance is negative,perk is too high and have a negative impact on company performance; in the nonstate-owned listed companies, correlation of management compensation andcompany performance is positive, correlation of perk and company performance ispositive, management compensation and perk inspire management obviously.