The Empirical Research In Top Management Compensation And Company Performance

Separation of corporate ownership and control increase how to formulate reasonable compensation of the seriousness of this problem. And the real estate industry is known as "one of the most profitable industry", the executive compensation has been the focus of the government, society, public opinion. How to establish an effective executive incentive mechanism, as far as possible to reduce agency cost, so as to improve the performance of enterprises. Therefore, the development of more efficient, scientific and rational compensation system is particularly important, so that both stimulate managers to improve motivation, develop a reasonable strategy to maximize profits as much as possible, but also make their own value managers realized, but also to prevent the waste of resources caused by the blind competition.This study was based on this background, the selection of the relationship between executive compensation and corporate performance as the starting point and the foothold of the study, explore the executive compensation and corporate performance of listed companies of real estate in our country correlation, provide the basis for our country real estate industry to develop executive compensation.In this paper, by adopting the combination of normative research and empirical research method, is studied mainly from the five aspects. The first part, The second part and The fifth part uses a standard research, part of the third and fourth part of the empirical research. This paper uses data mainly from the annual reports of listed companies, GTA database, through a series of filters, and finally select the Year 2010 – 2013 58 real estate companies for the study. Selection of the natural logarithm of the average of the top three executives total compensation as a measure of executive compensation in the variable design, select the ROE as a measure of corporate performance and selection related factors as the proxy. According to the purpose of constructing multiple linear regression model to examine the relationship between real estate companies between executive pay and corporate performance, the use of multiple regression model Eviews7.2 descriptive analysis, correlation analysis and multiple regression analysis.In this paper, empirical studies have concluded, executive pay increases every year, and executive pay and corporate performance was a significant positive correlation. This indicates that executive pay and corporate performance are linked, China’s real estate enterprises in executive pay structure is based on corporate performance to make them. Finally, this paper analyzes the results obtained from the system level and the technical level made policy recommendations on executive pay incentives.