The Positive Study On The Relationship Between Senior Managers’ Compensation And Performance Of Home Appliance Industry Listed Companies

With the development of technology and society,Intellectual capital is becoming more and more important.Company’s senior managers dealing with the daily business and responsible for strategic management and decision-making play an important role in company’s development.Company’s senior managers are the most important part of the selection of company human resources.Home appliance industry has been developing in more than 30 years since Chinese reform and opening. Chinese appliance have been developed from zero to more,from shortage to popular. Chinese appliance industry has been growing from weakness to strength at a fantastic speed. Although the overall strength of Chinese home appliance industry has became strong, there is a great distance between overall operating performance of Chinese home appliance industry and leading international business performance. Therefore, in order to enhance the enthusiasm of senior managers, with the separation between ownership and management, it is very significant for the future survival and progress of Chinese home appliance listed companies to establish an effective incentive mechanism to reduce agency costs, attract, and hold outstanding senior managers.This issue aims to explore the relationship between senior managers’ compensation and performance of home appliance industry listed companies so as to give suggestions for designing and making a more reasonable and perfect senior manager’s compensation system to Chinese home appliance listed companies. This study aims at China’s home appliance listed companies. Senior managers’ compensation and corporate performance data from 2010 to 2014 has been selected. After The data being filtered by some principles,149 appliance companies has been chosen. From the perspective of positive study of the correlation between the senior managers’ compensation of Chinese home appliance listed companies and operate performance. The positive study’s results show that the correlation between the company senior managers’ compensation and corporate performance is positive. Both Asset-liability ratio and the size of the company are positive correlated with senior managers’ compensation. There is a negatively correlation between the company senior managers’ compensation and the proportion of independent directors. But the correlation between the ownership concentration, the size of the board of supervisors and senior manager’s compensation do not pass the significant test.