Research On The Influence Of The Target Oriented Internal Control On The Executive Compensation Of The Listing Corporation

The separation of management and ownership has prompted the formation of the agency relationship,agency costs under the proxy relationship has an important influence on the relationship between the two parties based on agency theory.As the agent of the agency relationship,executives are the owners of the listing Corporation,they have the right to operate the business activities.As the agent of the listing Corporation shareholders,in order to reduce the agency costs,to take appropriate incentive mechanism for executives to achieve the maximum value of the target has an important impact.The generally mode of incentive be adopted by listing Corporation is executive pay,therefore,to give full play to the effectiveness of the incentive mechanism,improve the executive compensation system has an important role.Internal control as a part of corporate governance has great significance for the development of listed Companies executive compensation by incorporated it into the listing Corporation executive pay policy system,also has great significance to achieve the objective of maximizing shareholder value.In this paper,theoretical part describes elaborated how the internal control affect executive compensation of listed companies from the angle of internal control's five major aims,and put forward the corresponding hypothesis.Empirical part mainly analyze the impact of the target oriented internal control report on the reliability of the listing Corporation by selecting target-oriented internal control objectives to achieve the degree of indicators to A shares listed on the main board of the Shenzhen 464 company as a research object,its 2012 to 2014 data as a sample,the use of factor analysis,descriptive statistics,correlation test methods and multiple linear regression analysis,then to draw relevant conclusions: reports Reliability and legal compliance,asset security,business objectives and the extent to achieve strategic development objectives of the internal control and executive compensation of the listed companies is positively correlated.At last put forward policy recommendations on the basis of empirical results and conclusion.