Cash Dividend, Executive Pay Gap And Enterprise Performance

Cash dividend and the executive compensation policy is the important link of corporate governance system, Agency problem between owners and managers of the enterprise and enterprise performance in the future can be more far-reaching impact. But in recent years, with the securities and futures commission first half a mandatory requirement for the listed company dividends, followed by the ministry of finance of state-owned enterprises "salary limit” executive pay, mandates that the scope of the state-owned enterprise executive pay gap, cash dividend and executive pay gap influence on many aspects, such as business performance began to become a hot social concern.At present, the academia is on cash dividend, many aspects of the research was conducted on the executive pay gap, numerous scholars on cash dividend policy or executive pay gap between individual impact on enterprise performance is studied. From the existing research, most scholars believe that in the case of China’s capital market is not mature, the issuance of cash dividend can to a certain extent, reduce the agency problem brought by two rights separation and decrease the cost of external supervision; At the same time, also has the study found that executive pay gap is also an effective method to solve the problem of agency. However, few studies have the cash dividend and executive pay gap together to consider their interactions.Reference existing research literature, this paper summarizes the existing research results, and combined with the actual situation of the capital market in China, the cash dividend and executive pay gap within the same research framework, and enterprise performance as the point, from the perspective of corporate governance and principal-agent problems, research on cash dividend, the executive pay gap interaction effects on business performance. Specifically, this paper studies combining theoretical analysis and empirical research, and according to the different nature of equity group studied the A-share market in our country manufacturing industry listed companies cash dividend, the executive pay gap between enterprise performance impact.First of all, this article elaborated the research background, and put forward the research question in view of the research background, introduced the research purpose of this article, research ideas, research content, etc.; And then, combing and summarizing the relevant research literature at home and abroad; Secondly, in this paper, the article will use the cash dividend policy, the scope of the executives, executive pay and corporate performance and other related concepts defined, has been clear about the later need be explained variables and explanatory variables, but also on the paper need to draw lessons from the classic dividend theory, principal-agent theory, the tournament theory, fair theory and other basic theory are simply described; Through theoretical analysis, and then according to the basic theory of cash dividend policy and the relationship between corporate performance and executive pay gap and the relationship between corporate performance and the cash dividend policy and executive compensation policy impact on business performance together, put forward in this paper, the six hypotheses. Again, this paper collected a-share manufacturing listed companies in our country the related data from 2010 to 2014, according to the total sample group, the sample group of state-owned enterprises and non-state-owned enterprises sample group, the first single of cash dividend and the relationship between corporate performance and executive pay gap and the relationship between corporate performance and empirical test, and the empirical cash dividends and executive pay gap and the relationship between the corporate performance.Through empirical test, we draw the following conclusions: 1, cash dividends and corporate performance positively correlated, indicating increased cash dividend to reduce agency costs between shareholders and management, enhance corporate performance, is an effective governance mechanism, and in the non-state enterprises, increasing the cash dividend for improving business performance is more obvious; 2, the gap between executive pay and corporate performance positively correlated, indicating that the gap between executive pay in line with tournament theory, increase executive pay gap will significantly reduce agency costs improve business performance, it is also an effective governance mechanism, and in the non-state-owned enterprises, improve the gap between executive pay for senior executives greater incentive effect; 3, cash dividends and executive pay gap in improving the performance aspects of business substitution effect. Since the cash dividend can identify high-quality managers to some extent, therefore, for payment of current executives may want to win the "game" to beat other competitors purpose of improving the cash dividend, the shareholders in order to interfere with the performance of executives the right to judge, so the gap between executive pay cash dividends and mutual suppresses play its governance role, and this substitution effect in the performance of state-owned enterprises is not obvious. 4, the paper also found that can significantly impact business performance company size, risk, the ratio of the largest shareholder, the proportion of executive ownership, cash flow from operating activities.Finally, this paper research conclusion and cash dividend of listed companies in our country and of the specific conditions of the executive compensation, put forward two Suggestions, and points out the deficiency of this article, also for future research direction was prospected.