Study On The Impact Of Internal Pay Dispersion Of The Listed Company Executive’s Team On The Company Performance

After the division of control and ownership, people start to pay more attention tothe relationship between different actors in the corporate governance structure, whichis what we call the Principal-agent Relationship. During the past20years, this hasbecome the Principal-agent theory. Although the usage of the Principal-agent theory isnot limited to the analysis of the enterprise, the principal-agent analysis of thecorporate stakeholders is still the main application. One of the major issues for theprincipal-agent analysis is how to motivate the agents with salary.This thesis combines the Standardize Analysis and the Empirical Analysis.Firstly, the author reviewed the relevant reference about the executive payment issues,both domestic and foreign. Analyzed the relevance between executive payment andcompany performance with the tournament theory and behavioral theory. And thenmade a descriptive statistical analysis of the Chinese executive payment’s currentstatus between2008and2010, turn out that the company size and industry differencesmay affect the relationship between Chinese listed company’s executive payment gapand company performance. Based on the discovery, the author picked up140listedcompanies between2008and2010as the experiment subject. Combining with thecompany size, areas, and industry, the author proposed two assumptions.The first part of this thesis is the Introduction, in which the author mainlyintroduced the background, meaning, thinking and method. It also includes the mainperspectives of the domestic and foreign scholars. The second part is about thetheoretical research and current status analysis. First, the author introduced twofamous basic theories-tournament theory and behavioral theory. Second, the authordefined the relevant concepts about executive payment and company performance. Atlast, the author made a descriptive statistical about the data of the executive paymentgap in recent years, summing up the status of executive payment gap. The third part isthe Empirical Analysis. The author picked up the latest data and adjective about theresearch, built two models, then analyzed the relevance between executive paymentgap and company performance with the SPSS. The last part sums up the result of theresearch. And the author proposed five political suggestions. At last, the author madea prospection for the future research.The empirical results show that the company performance and the executivepayment gap have a positive correlation. In the factors affecting the companyperformance, the performance has a positive correlation with the company size, and anegative correlation with the industry.