Study On Chinese Marketization Degree Of Human Capital From The Analysis Of Company Executives Pay System Rationally Based On 2007-2013 Of Chinese Private Listing Corporation

With the reform of economic system, our country transformed from planned economy system to market economy system. But how is the market process state? Different scholars have studied it from different point of view. About the measurement of the marketization process, the existing researchers studied it from quantitative methods, such as the index and the scoring method. In order to measure the economic marketization fairly in our country, this paper attempts to investigate the consistency of human capital from the market through private listing corporation to measure. We use the executive pay of the private listing corporation to answer process of marketization indirectly in China.This paper mainly investigates the two parts:Whether economy is market-oriented and the market-oriented level; measuring market-oriented degree and comparing with previous studies. About whether economy is market-oriented, we should first establish the model to investigate the relationship between compensation and performance. This can answer whether the pay of Chinese private enterprise executives followed the market rules of flow and appointment, incentive and punishment indirectly, thus we can know human capital market system based China formation and operation status of market economy. To investigate the degree of marketization, the formation of the main factors affecting the establishment of private listing Corporation executive compensation is important, which include the characteristics of company and executive features that needed to be supplemented. Among them, the characteristics of company include the company’s stock price and the performance characteristic, the size of the company, the company’s industry and region, the board of directors and board independence rights. Executive features mainly include the level of education, experience and age. To measure the degree of marketization, we design the model to study the specific degree. Through the relationship between the coefficient of variation of industry executive pay and the coefficient of variation of industry professionals, we finally get the coefficient of variation of the average wage rate. If the coefficient of variation is bigger, the degree is low. At last, we need to compare the distribution of space and time of executive pay. Different time by time window and spatial distribution investigation of market development speed and in different time and different area market development degree. According to Fang Gang’s index of marketization and all regions of the GDP described the distribution of different area in different period of China’s marketization process of time and space. According to the distribution of the market process Fang Gang index and GDP described by Chinese time and space as the study of private listing Corporation hired executive compensation and the process of marketization in China related standards. According to the results of empirical analysis, executive pay of private listing corporation is the existence of marketization. Performance is the impact factor of executive compensation, and there is a certain relationship between executive pay and experience and age. Through the method of specific measurement also shows the marketization of executive compensation.