Research On The Correlation Between Top-management Compensation And Enterprise Performance Of Listed Auto Manufacturing Enterprise

In the process of separation of ownership and management which lead to theprincipal-agent problems,because of sorts of reasons,such as information asymmetry whichbetween owners and executives result in there are goals are inconsistent.And the complexityand uncertainty of modern enterprise operation has aggravated the severity.So it’s veryimportant to design the reasonable compensation system which can effectively attract andmotivate executives to improve the business enterprise performance to make the greatestefforts.Through the advantages such as natural resources and labor China’s automobileindustry gradually in the industry under the condition of get good grades in the world autoindustry, but the problem still cannot be ignored, such as there is still a gap in technical levelto the developed countries. Along with the industry in the rapid rise in the process ofeconomic development in our country, more and more attention were paid to auto industry inthe imbalances of the relationship between executive compensation and corporateperformance.The research first make a brief description to our country’s achievements in thedevelopment of auto manufacturing and its internal and external environment. Then reviewedthe domestic and foreign scholars study about the relation between executive compensationand corporate performance, summarizes the research of scholars on this issue and researchlimitations.through the elaboration and analysis of the above problem for writing this articleidentified the research practical significance and theoretical significance. With the deepeningof the preparatory work, in the process of research will involve the definition scope of somekey problems, according to the domestic and foreign scholars in past research, this study usethe realistic operability of general practice and research integrated consideration.This paper selects qualified73listed automobile manufacturing enterprise as the researchsamples, through collecting the data and using the factor analysis to determine the dependentvariable to ensure the enterprise performance level, and through the design of enterprise scaleand the actual control of the nature of the two control variables using the method ofdescriptive statistics and regression analysis of executive pay how to affect enterpriseperformance and the impact on enterprise performance. Between executive compensation and corporate performance of China’s automobile manufacturing industry from the results ofempirical analysis, there is a positive relationship, but this relationship is not static. From theempirical analysis result, auto industry in our country there is positive correlation betweenexecutive compensation and corporate performance, but it can’t simply think that thisrelationship is invariable, because in the control variable of scale and the actual control underthe influence of human nature will have difference.Finally, according to the research results of the statistical analysis, this paper explainssome problems which appeared in the process of research,and points out the limitations of thispaper.By combining with the results obtained from the research and the limitations of thispaper,then point out the prospect of research on such issue.