Research On The Impacts Of Accounting Information Quality To Pay-Performance Sensitivity

According to the theory of modern enterprise management, shareholders in order to minimizeconflicts with senior executives, should take certain executive compensation incentive mechanism.Executive compensation incentive mechanism not only alleviate the agency conflicts, reducingagency cost, but also encourage the creation of enterprise executives performance higher. In recentyears, study on the performance of our listing Corporation executive compensation, mostlyincentives to executive compensation, executive compensation and corporate performance of therelationship and interaction, most researchers prefer the research on relationship between. However,China’s listing Corporation has a unique way of governance, affecting the quality of accountinginformation on pay-performance sensitivity also exist certain special effects. However, seen fromthe listing Corporation released annual report, many listing Corporation have executivecompensation performance and the quality of accounting information of decoupling. Effect ofpay-performance sensitivity should give full consideration to the quality of accounting information,the accounting information quality factor, also will become the measure of executive compensationperformance, further have an important impact on executive compensation performance sensitivity.Therefore, it is necessary to conduct further research on executive compensation and therelationship between the quality of accounting information by using new data sample, the researchon the accounting information quality has a very important theoretical and practical significance onpay-performance sensitivity.This paper will study the accounting information quality issues related to the influence ofpay-performance sensitivity, based on the stage theory, the system described the background,significance and purpose of the study, discusses the related theory of this study relates to the. In thequalitative analysis of accounting information quality on pay-performance sensitivity, qualitativeanalysis and study design was determined, focuses on the factors affecting the quality of accountinginformation on pay-performance sensitivity, and starting from the angle of dialectical analysis,in-depth study of the interaction between the quality of accounting information and thepay-performance relationship, eventually the analysis results. Qualitative research in this part, thewhole research paves the way for the following quantitative analysis. In the empirical analysis ofaccounting information quality on pay-performance sensitivity, this paper will be involved in a newfield of research, the quality of accounting information is an important sensitive factor into thepay-performance sensitivity analysis on the effects of specific effects, the listing Corporationaccounting information quality on pay-performance sensitivity. With the financial data of 2009-2011listing Corporation through alternative index to calculate the quality of accountinginformation of the company, ranking selection out of the top10%and10%on the quality ofaccounting information, and grouping them into two groups: the quality of accounting informationand accounting information quality is low, in the two groups during the period of2009-2011paneldata structure sample, the quality of accounting information on pay-performance sensitivity isinvestigated through grouping regression.