A Study On The Correlation Between The Executive Pay Of The Private Manufacturing Listing Corporation And The Company Performance In China

Since the close of the 2008 financial crisis, executives of listed companies’ “astronomical salaries”, the phenomenon has aroused heated discussion of business and academia, the correlation between executive pay and corporate performance has become the focus of academic discussion. Various studies have attempted to discover how to influence the level of executive pay their own performance, the result is different. The reason is mainly composed of two situations: Due to different studies selected objects give different results; variable indicators chosen because the study results vary.In this paper, China’s private listed manufacturing companies in the research object, the relationship between executive pay and corporate performance, while Canadian executives and other factors stake. The article on the analysis of current research and related theories above, the relationship between the two were discussed. When building the company performance indicators article using factor analysis were analyzed for 12 indicators, obtained a composite indicator reflects the company’s performance, as in this study on behalf of corporate performance variables. When fully analyze the relationship between executive pay and corporate performance, the paper constructed four regression models: were executive compensation and corporate performance to be interpreted as a variable to build a univariate and multivariate regression model, the regression model will be far into the Executives stake and other control variables. To ensure the robustness of the results using both paper ROE performance as the company on behalf of variable regression, the results of this study as a control and reference. In the end of the article summarizes and analyzes the results of the regression are deduced the relationship between China’s private manufacturing executive pay and company performance and executive shareholding and other factors, and really put forward some suggestions for the conclusion of this article, the study Relationship between executive pay and company performance and improve corporate governance is of great significance.