| With the development of corporate of the Western countries and with the gradualdeepening of the western firm theory, the modern executive compensation system hasgone through a fairly long period of time from scratch. The appearance of theshareholding companies led the separation of the ownership and management. Thatbecause the owner and executive hold different interest objectives and the informationabout the company cannot be delivered to both of them at the same time, how toformulate reasonable executive compensation is severely serious. In the year of1998, thelisted companies of China began to publish the executive compensation as well as theshares which were hold by the executive in the annual report. In the next two years theCSRC (the China Securities Regulatory Commission) modified the rules about theexecutive compensation disclosure. Before the annual reports are published, theexecutive compensation of listed companies is a hot topic of the investors. In China, thereal estate industry has made an indelible contribution to the domestic economic growthand improvement of the level of the residential housing. The executive compensationalways captures the attention of the media and the public talk the executive compensationa lot. The public will not curious about the news that the executive compensation of the greal estate company has been raised. According to the Annual Report of2010,theexecutive compensation of listed real estate company had been increased collectively.That executive compensation rose more than the performance increasing of the listed realestate companies accounted for nearly forty percent. The compensation increase for theexecutives whether based on the corporate performance. That whether the executivecompensation has the relation with the performance of the corporate puzzles people.To study the relationship between the executive compensation and corporateperformance of listed real estate companies and make the executive compensation systemmore reasonable, the issue has used the standard study and empirical study. The issueaims at the listed real estate companies and the companies which issue B share or H shareare not included. The issue has selected executive compensation and corporateperformance data from2007to2010. The data will be filtered by principles. Finally theselected samples are252.The EPS and WROE are used as a measure of corporateperformance indicators; the total of the top three executive compensation is used as the compensation data; using correlation analysis to test independent variables whether hasmulticollinearity in different models; using regression analysis to study the executivecompensation and the whether the corporate performance and, as well as the factors thatinfluence executive compensation; using regression analysis to study whether theexecutive compensation and managerial share ratio will affect the corporate performanceand whether the corporate performance and managerial share ratio will have an impact onthe executive compensation.The research results show that no matter EPS or WROE is e used as a measure ofcorporate performance indicators, there is a significant positive correlation betweenexecutive compensation and corporate performance, but the correlation betweenmanagerial share ratio and corporate performance do not pass the significant test and themanagerial share ratio has a negative effect on corporate performance. The regressionanalysis results of the executive compensation and its influencing factors show that thereis a significant positive correlation between corporate performance and executivecompensation, but the correlation between managerial share ratio and executivecompensation do not pass the significant test and the managerial share ratio has anegative effect on executive compensation. In regression analysis, when using differentindicators evaluate corporate performance, asset size, ownership concentration and theproportion of state-owned shares have different effect on corporate performance andexecutive compensation. |
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