An Empirical Study The Level Of Executive Pay And Performance Of Listed Commercial Banks

Senior managers are the most important and special human resources of the listed commercial Banks,They play an important role in the development of the listed commercial Banks. Due to separation of ownership and management in corporations, It may leads goal conflict and Information asymmetry between senior managers and shareholders.Tense, etc (1976) first put forward the Entrusted agency theory,They think that only set a valid incentive mechanism of executive compensation.it can better guide the senior managers and owners Interests converge. Executive compensation as an important part of executive incentive system.it gets the attention of academic. With the exposure of executive compensation of listed commercial Banks in China And the government implemented a "salary limit". The senior managers’compensation in China’s banking industry cause the extensive concern of the social from all walks of life. Reasonable compensation can improve the performance of listed Banks and motivate managers to create value.However, good corporate governance can bring greater benefits to enterprise. So as to enhance executive compensation. In this paper, To discuss The rationality of executive pay of China’s listed bank. Corporate governance regulation on executive pay and corporate performance. With China’s14listed commercial Banks as the research object, Carried empirical research and analysis on executive pay and bank performance of Listed commercial bank. Through analyzing, In view the problems of Salary incentive mechanism of listed commercial Banks in China and corporate governance, come up withrational Suggestions.To improve the performance of listed commercial Banks in our country. To make long term continuous development of the listed commercial Banks in ChinaThis paper is divided into six parts:The first part is the introduction. This part mainly introduces the background and significance of the topic of this article, the main content of the study,the main framework of the thesis introduced, and the definition of concepts related in this article, which are senior management, executive compensation, and enterprise performance.The second part is the underlying theory and literature review.Firstly, we introduces the theory related to executive compensation which include the principal-agent theory, human capital theory, incentive theory. Secondly,we review the level of corporate governance theory, the correlation between executive pay and corporate performance research.The third part is executive pay and corporate performance of listed banks research design. In this section, we explains the selection of listed bank sample, data sources, variable selection, the definition of variables, hypotheses proposed in this article, the regression model established in accordance with the assumptions of the previous.The fourth part is the empirical results of analysis of the executive compensation and corporate listed banks. We firstly descripts statistical analysis, principal component analysis using SPSS software eigenvalue of the level of corporate governance of listed banks data, draw the level of corporate governance of listed banks score. And explanatory variables of this article is to explain and control variables correlation analysis, regression analysis on these variables, in order to examine the relationship between executive compensation and corporate performance of China’s listed banks and influencing factors.The fifth part is the conclusions and recommendations of this article Summarized based on the analysis of the first four parts of this study to understand the conclusions of this study through the part. Executive pay and corporate performance of China’s listed banks based on the results of this study, analyze and summarize the summary of the results of research on the basis of China’s listed banks to develop executive compensation policy given theoretical suggestions, as well as how to mention listed banks the level of corporate governance, and thus better able to create enterprise performance.The sixth part is the lackness of this research and future outlook. Duing to the limited availability of data and the time and effort, just examine the listed bank data, has not been studied for non-listed banks, to some extent not fully reflect China’s banking industry overall development; listed banks in the study executive compensation, consider only executives pay monetary remuneration, while ignoring the executive long-term incentive (equity policy), as well as welfare policy; once again, for the the listed bank executive pay differences in the structure of this article did not study. These aspects are to be studied is the focus of future research.In this paper, there may be innovations on the basis of View previous articles:1. Improved the performance of commercial banks. For bank performance indicators innovative, not only select a single indicator to measure the performance of the bank, but to select multipleindicators, to make up for the defects of the existing research using only a single indicator. Corporate performance indicators set two variables to measure the performance of the bank ROA is a performance measure of a bank’s return on total assets, ROA relative to ROE not only consider the characteristics of high debt of commercial banks, but also a better measure of the overall profitability of the commercial banks. Another ROC namely cash rate of return on net assets, and to measure the recovery of all the assets of the cash used for operating activities of the listed banks, asset recoveries.The quality and quantity of the indicators from the two aspects of a comprehensive measure of the performance of listed banks.2. Proposed new perspective on executive pay and corporate performance. Listed commercial bank executive pay and corporate performance, focuses on the relationshipbetween executive compensation and corporate performance.corporate governance structure and firm performance, few explore the relationship between the paper from the level of corporate overnance angle to conduct a study to examine whether the level of corporate governance affect executive compensation and corporate performance of listed banks.For the level of corporate governance, ownership concentration, the shareholders meeting, the shareholding structure, board of directors and board of supervisors and other aspects of the11indicators to examine the level of governance of listed companies, using SPSS value of principal component analysis of the level of corporate governance characteristics, so as to arrive listing composite score of bank corporate governance, and provide a new direction for the future study of executive compensation and corporate performance. 3. In this paper, adopts the date from the GAT database and Manual collection the annual report of14listed commercial Banks as the research sample, the past research due to the sample is too little,or The sample time span is small, Often take the cross section data to study the Relationship between the executive pay of listed commercial bank and corporate performance, This paper uses the2007-2011panel data of14listed Banks, To avoid the cross section data caused the instability of the results.