Empirical Studyon Contributing Factors Of Executive Compensation Of Listed Companiesin Growth Enterprise Market

With China promoting the scientific concept of development and industrial restructuring, Shenzhen GEM is becoming a new impetus of innovation economy, which represents the direction of domestic economic transformation and upgrading for some time in the future and is also a fundamental focus of development policy support. However, the vast majority of domestic academic research focused on the motherboard market, while there are few studies on the GEM-listed companies. Since2013, the GEM stock prices have been on the rise, and senior executives are starting to have cash holdings, which well eases senior executives holding high and chairmen dominance. It has become inevitable that the internal structures of the senior executives alter. The GEM-listed companies are mostly high-tech SMEs with high growth, high innovation and high-risk characteristics, which calls for the urgent need to attract and motivate outstanding management personnel and give full play to their management skills. However, due to the short time to market and smaller scale, the companies’internal governance structure and the remuneration incentive system has yet to be perfected, which leads to a series of irrational phenomena.On the basis of principal-agent theory, human capital theory and motivation theories, this thesis aims at GEM Companies’characteristics and realistic condition and it carries on the summary in four aspects including company characteristics, corporate governance, senior management and external environment, combining with the relevant research both at home and abroad. On that basis, it makes comprehensive comparison between the gem and Shenzhen main plate on each index. Starting from the differences of the gem, it uses executive compensation as the dependent variable, and uses scale of company, company performance, research input, preshrt and the board size as the independent variable. It gets data from GEM Companies’annual reports from2009to2012as research samples, and implements a descriptive statistics method, correlation analysis and multivariate regression analysis for empirical analysis of internal and external factors, which affected the gem executive pay. It found that GEM Companies, scale of company, company performance, research input and geographical advantages had significant positive impacts on the executive compensation, while preshrt had significantly negative impact on it and the board size and construction, compensation committee and executives’personal characteristics had no significant influences. The independent director in the board of directors, institutional investors in the enterprise and compensation committee didn’t play monitoring roles on executive pay, Also, executives’own human capital value had not been fully reflected. In conclusion, there are many defective and unreasonable phenomena in formulation of executive compensation contract and corporate governance board, etc. Based on the analysis of the investigation results, the thesis specifically gives the measures and suggestions for improvement and provides a reference for formulation of executive compensation contract and the improvement of the corporate’s internal governance structure.