Research On Relationship Of Executive Pay And Corporation Performance Of GEM

Executives as a modern business-critical human resources, they are crucial to the development of enterprises, and with the separation of ownership and management rights, the Executive incentive and restraint system are worthy exploring. With the found of GEM, scholars have found the phenomenon of excessive executive pay incentives in the presence of companies listed on GEM. Therefore, the article believes that is very necessary to study the GEM executive compensation and corporate performance -related issues, in order to find a more suitable executive incentive and restraint mechanisms, and to improve the performance of listed companies on GEM.This article uses GEM listed companies as samples, normative and empirical research using a combination of methods. First of all,executive compensation issues related literature were reviewed, and separately from the compensation theory, agency theory and human capital a theoretical point of relevance executive pay and company performance is analyzed theoretically. and then the status quo and the status quo of China’s corporate performance in 2012 GEM executive compensation were descriptive statistics and analysis, and hypotheses and sample design.At last,2010-2012 data came in empirical test,to get the results for suggestions and countermeasures.The articles selected for 2010-2012 totaling 538 companies listed on GEM as samples for executive compensation and corporate performance empirical analysis, the following conclusions:(1) The GEM executive compensation and corporate performance is positively correlated, and in operating cash flow per share and net ROE of two performance indicators significantly. (2)The executive pay and company size was a significant positive correlation significantly. There is a strong positive correlation. (3) The GEM Listing Company executive pay levels links to and the company area. Executive pay is also higher in the more developed economies zone. (4) There is a strong correlation of the GEM Listing Company executive pay levels and the company’s industry, industry non-manufacturing companies, executive compensation is higher than the manufacturing industry.In this paper, Executive compensation and corporate performance correlation between the empirical study in companies listed on GEM, and joined the industry variables and variable regions, also proposed management advice GEM listed company executive compensation, deepened China’s listed companies executive compensation incentive mechanism correlation between awareness and corporate performance, with further innovative.