An Empirical Study On The Relationship Between Listing Corporation Executive Compensation And Company Performance Of The Listed Companies On GEM

Since listed in 2009, the GEM has caused important fluctuations to China’s capital market. It’s characteristics of the high-growth and high-risk, has attracted a large number of venture investors and investment watchers. In turn, promote the high-speed development of the growth enterprise market, making it amazing within five years of growth. At the same time, attract the attentions of academics and social public, the study of listed companies on GEM has become the hot spots of society. Because our country’s main board market was established earlier, has been relatively mature and stable. Research on the main board market has entered the mature stage, a lot of theories and researches have been agreed by scholars. However, the GEM itself and the motherboard have a big difference. Weather the research conclusions of the main board are suitable for the growth enterprise market and how is the extent to the applicable, are the problems that are to study and solve. This article only chooses one of the studies on the gem, namely study the relationship of the gem listed companies between executive compensation and corporate performance, so that the public in the performance of the gem is more clear on this issue.In this paper, study the relationship between executive compensation and corporate performance of the listed companies on GEM in the theoretical and empirical analysis. Use the 2010-2013 data of listed companies as samples, the natural logarithm of the total compensation for the independent variables, the performance comprehensive index from factor analysis as the dependent variable, based on the factors affecting the performance, at the same time, using a series of index that are highly relevant to performance as the control variables, use the regression analysis of empirical research to get two conclusions : first, the executives’ total pay of the listed company on GEM is significantly positively related to the current corporate performance; Second, the executives’ total pay of the listed company on GEM is positively related to corporate performance of the lag issue, and significantly.Based on the empirical research conclusion, it is suggested that the listed companies on GEM should formulate scientific compensation levels, optimize the structure of compensation,establish a transparent salary system and give attention to the company’s short-term growth and long-term development; Perfect the governance structure of corporate, moderately diversify equity; Strengthen the non-material incentives, with emotional and spiritual incentives to improve the existing salary incentive mechanism; Specify the company’s internal governance mechanism and external environment, strengthen the supervision and administration of the board of supervisors, perfect the relevant laws, regulations and markets.