Sensitivity Analysis On Ownership Concentration Of State-owned Listed Company To The Impact Of Executive Compensation

In recent years, the executive pay levels drawn much attention from the society and government. In the process of reform and development in our country, the economic and social sustainable development, the rise and fall, success or failure of the enterprise development, has a very close relationship with enterprise senior management. It is a core problem that how to improve enterprise value, and combine with the executives interests in the field of corporate governance. In order to solve this matter, The executive compensation should tie with the corporate performance, and it is a good way to use a reasonable and fair compensation incentive mechanism to encourage executives,and take the maximization the enterprise value as them own duty. So far, It has been the common validation that payment and performance have a significant positive correlation, and many researchers do big shareholder control on the influence factors of the compensation performance sensitivity. However, under the background of big shareholder control. Does the pay levels of Chinese state-owned enterprises will be affected by ownership concentration degree, how much does it affect, and how is it suitable for enterprise development? These problems are the focus of the research in this paper. In this paper, starting with the perspective of theoretical research, we combed the basis of the views about the influential factors of executive compensation in the domestic and foreign research, and carried on the empirical research about the decisive factor of executive pay in the state-owned listed companies on the basis of the theory. It can be found that many factors have much significant effect on executive pay including the corporate performance and ownership concentration, firm size, corporate governance structure, corporate debt ratio, industry, regional and so on. The most important is studying executive compensation sensitivity. Ownership concentration can influence compensation contracts, for providing a quantitative basis for the establishment of executive compensation scheme. On this basis, we do the empirical research of the relationship between executive compensation and its determinants, using expert evaluation method based on PCA to determine determinant strength in our the state-owned listed companies; Multivariate regression model is established to research on the impact of ownership concentration on executive compensation sensitivity, According to the research conclusion, standing the perspective of practical application, Some corresponding compensation designs and improvement suggestions are put forward, and it supports the pay reform of state-owned enterprises...