An Empirical Research On The Influence Of The Executive Remuneration Of The Listed Companies In Inner Mongolia On Company Performance

Executives are leaders in enterprise. Executive remuneration is key element tosolve the contradiction between shareholders and management principal agent, at sametime it is also a mirror to show the overall governance of the enterprise. And theeffective of the executive remuneration incentive will have a significant economicimpact for companies. Therefore, the Influence of executive remuneration and companyperformance has very important theoretical and practical significance. The research isbased on19Inner Mongolia listed on companies which are listed before Dec31,2010,data sources is based on relative financial data from2007to2010. Proceed fromexecutive pay and ownership, the research is selected for the evaluation of executiveremuneration and company performance, to build a multiple liner regression model, andto conduct descriptive analysis， Correlation analysis， regression analysis. Theempirical result shows that, there is significant liner relationship between executive payand short-term company performance, executive ownership and long-term companyperformance. while the non-liner relationship was not significant among the executiveownership and short-term company performance, executive compensation and companylong-term performance. Based on that, excluding the listed on companies of at the sametime issued A shares and B shares and*ST. These samples are used a comparative studywith all the listed companies. The empirical analysis results show that, the type of listedcompanies to issue stock and listed company’s financial position does not affect therelationship between executive remuneration and short-term performance, but willaffect the relationship between executive remuneration and long-term performance.From the theoretical point of view, the research will verify the relationship andinfluence between different form of executive remuneration and company performance.It will enrich the theory of executive remuneration incentive theory and will provide atheoretical base for the promulgation of executive compensation-related standards,regulation and how to improve the corporate governance structure, and enhancecompany performance.From the practical point of view basis for the summaries of theresearch, the problem in Inner Mongolia executive of listed companies remunerationincentive would be identified, point out the how to improve this issues and finally getsuggestion for that.