A Study On The Impact Of Financial Asset Classification On Executive Compensation

August 29, 2014, the Politburo approved the "The Reform Plan", so that the phenomenon "executives have high salaries" has aroused public concern, the media reports also sparked public to think of the problem. With the liquidity of financial assets gradually increased, more diverse of global capital markets, more and more companies and applications to hold financial assets, financial assets accounted for the proportion of total assets increasingly high. However, due to accounting standards and auditing, supervision is not perfect, so there is a big surplus of financial assets managed space, whether executive compensation which will be affected by the classification of financial assets, we need to be concerned about.This paper attempts from the perspective of executive compensation, analyzing classification of financial assets to the financial investment income assets "time difference" effect, aimed at dividing the initial tendency to the classification of financial assets and executive compensation, revealing accounting related to financial assets tendency to influence the choice of policy on executive remuneration and propose appropriate measures and recommendations. This study helps to achieve optimal allocation of social resources, and promote the rationalization of executive pay levels, to provide a new perspective for the study of executive compensation, but also for earnings management study provides a new way of thinking.The date from 2007 to 2013 Shanghai and Shenzhen A-share listed companies in non-financial and insurance industry as the research sample regression. Regression results support the hypothesis of this paper, that the more financial assets held by the Company, executives tend to be classified as available-for-sale financial assets; the impact of management’s tendency to divide the assets of the financial investment yield does exist "time difference " effect, and this effect is significant, and the types of available for sale financial assets accounted for the proportion of financial assets on the current investment rate of return of financial assets is also a significant positive correlation, further evidence that the management of financial assets classified manipulative tendencies exist phenomenon; financial investment income and other income assets are on the executive pay significant positive relationship, but compared to other income, the greater the impact of the financial assets of the investment income on executive pay, more pronounced.