Research On The Effect Of Executive Compensation On Performance Of Small And Medium Board Listing Corporation

With the development of economy,small and medium sized listing Corporation in the stock market has experienced twenty years after the development of the market economy becoming an important role in the market economy.China’s capital market is entering full circulation time after share splitting reform.For large shareholders,who are from the original non tradable to tradable,how to improve the performance of small and medium sized board listing Corporation has become a permanent topic of interest convergence.On the one hand, how to evaluate the financial performance of small and medium sized board listing Corporation more effectively and fairly becomes an important subject in the academic field.On the other hand, the research on the influencing factors of the financial performance of small and medium sized board listing Corporation is beneficial to the company’s long-term business interests,and also has practical significance to improve the operating performance of the company.For this purpose,on the basis of literature review and related basic theory,from the perspective of small and medium investors,this paper views SME board listing Corporation in 2011~2014 as research object,executive currency pay and the non-monetary executive compensation(including the proportion of executives and executives on the job consumption of executive pay) as measure index and the financial performance with the return on net assets and Tobin’s Q as index system.With the help of SPSS21.0 and EXCEL statistical software,descriptive statistics, correlation analysis and regression analysis were performed in order to get the regression model.This paper describes the influence of executive compensation on the financial performance of small and medium sized board listing Corporation.The main contents are as follows:Firstly, with the research background of the phenomenon of decoupling between small and medium sized listing Corporation executive compensation and corporate financial performance,the research purpose of making use of the executive compensation system to encourage the executives to contribute to the financial performance of small and medium sized listing Corporation and the research meaning of SME board listing Corporation to better sustainable developmen t and related areas to provide research data,this paper is based on related concepts of SME board listing Corporation,executive compensation and financial performance and theories such as principal agent theory,incentive theory,human capital theory and equ ity theory to do research on the foundation of domestic and foreign literature.Secondly,on the basis of the current situation and rational analysis of the executive compensation and financial performance of the small and medium-sized board,we put forward relevant hypotheses,that is,small and medium sized listing Corporation executives monetary compensation has a positive effect on financial performance,the proportion of executive stock ownership of small and medium-sized board listing Corporation has a positive effect on financial performance and Small and medium sized listing Corporation executives perquisite consumption has a negative effect on financial performance.This paper use the relevant software to carry on the empirical research including descript ive statistics,correlation analysis and regression analysis to verify the three hypotheses.After that,corresponding suggestions are put forward in three aspects,which are appropriately increasing the gap between executive pay of small and medium-sized board listing Corporation,improving the SME board listing Corporation executives compensation system and increasing the transparency of the executive compensation of listing Corporation executives in small and medium sized board.Finally, draw the conclusion of this paper.