An Empirical Study On The Relationship Between Executive Compensation And Corporate Performance Of The China Gem Listed Companies

Senior executives in the process of the development of the listed company as a business decision-makers play a very important role.Of the existence of principal-agent relationship between owners and executives of the interests contradictions exist for a long time, senior executives of enterprise’s enthusiasm, initiative is difficult to play.Research the mutual influence between executive compensation and corporate performance to improve the conflict of interest between managers and owners, makes our country the overall performance of listed companies has been effectively promoted, achieve "win-win" goal.And the role of the gem market in the capital market increased significantly, with the universality and particularity of listed companies in China.Gem relative to the main market of listed companies, listed in the threshold, supervision system, investment risk, etc, and main market have bigger difference, and listed on the gem companies are mostly engaged in high-tech nature of the business, has the high growth, profitability and risk characteristics, its executive pay also has its uniqueness.Relationship between different scholars in the study, the selection of indicators of executive pay and performance measures, considering the influence factors are different, so some think no significant relationship between the two, some scholars believe that there is a significant impact on relationship between.So in this paper, we study the gem listed companies the relationship between executive compensation and corporate performance have a more profound significance.First of all, based on the analysis summary research literature at home and abroad, this paper expounds the relevant concepts, this paper expounds the principal-agent theory, human capital theory, incentive theory and so on correlation theories research, from the industry and its region, this paper, the present situation of the executive compensation and corporate performance, for the gem listed company performance and the relationship between executive compensation research to lay the solid theoretical foundation;Then, in order to further explore the gem relationship between executive compensation and corporate performance of listed companies, when carries on the empirical analysis, regardless of the endogenous interaction relationship between two variables, assumptions, the design variables is derived according to the theoretical analysis and empirical model, selection of 2012-2014 the gem for three consecutive years of annual reports of listed companies, a total of 882 data as sample, using SPSS19.0 software and EXCEL2003, from debt service, operation, profitability, growth, development of four ability to select the nine indicators, using principal component analysis method to determine the amount of three representative eventually, according to the main component of the total variance contribution ratio, principal component comprehensive model, which means the gem listed company performance;Select executives is monetary compensation as explained variable to construct multiple regression model, description statistics, the empirical analysis study found between executive compensation and corporate performance was significantly positive correlation, the relationship between at the same time in this paper, the gem listed companies factors that influence the performance and compensation such as executives shareholding, corporate size, on-the-job consumption was analyzed.According to the result of empirical analysis, the gem listed companies how to effectively use, the relationship between executive compensation and the company through the adjustment of executive compensation to improve the company’s performance, etc, targeted optimization gem executive compensation of listed companies in China, policy Suggestions.