The Executive Compensation,Corporate Performance And Risk Taking

Agriculture is the primary industry of the country, which plays a key role in the national economy. Promoting agriculture steadily is the focus of the government, it is also one of the important content to promote reform deepening currently. The agricultural listed company plays an important role in promoting institutional and substantial innovation to improve the Chinese traditional agriculture.What's more, it is also the institutional product of agricultural industrialization, changing the drawbacks of traditional agricultural production.Agricultural listed companies not only improve operating performance and avoid market or natural risks, but also handle the agency conflicts between the shareholder and the senior management personnel. Co AMined with the current development of the listed companies' management, some negative phenomena appeared,such as agricultural listed companies developing quite differently after listing, the deterioration of the enterprise performance status, the funds using on the non-principal area, even several agricultural listed companies undertaking the risk of being listed as the ST* or delisting, compared to the case of European and American agricultural listed companies' management and operation of highly sophisticated, it is not scientific that the problem is attributed solely to the agricultural industry's weakness features, agricultural corporate governance issues are particularly prominent. Agricultural listed companies executive compensation, corporate performance and risk management have an important significant relationship with the reality and development of the agricultural listed companies, to study the executive compensation institution which is adapted to the features of agricultural listed company's running and managing risk,being benificial for agricultural listed companies' governance structure and management.In this study, the leading Chinese agricultural enterprises- agricultural listed companies are the research objects being selected.For agricultural production period being long, the agriculture being vulnerable to the nature and market risk,and being short for resource etc.The paper focused on the relationship between executive compensation, corporate performance and risk taking of agricultural listed corporation, and improved the incentive mechanism and risk management of executive compensation in agricultural listing Corporation.By querying the network database, agricultural listed companies from 2007 to 2014 was selected as sample data in the study. Being co AMined with the theory of economics, finance, management science, consulted all kinds of scholars' literature, the study also used several research methods such as theoretical analysis co AMining with empirical analysis and quantitative analysis co AMining with qualitative analysis etc.,highlighting the features of agricultural listed company.The study selected variable executive compensation of agricultural listed companies, corporate performance and risk taking,explored the connection between the three in an innovative way. The conclusions are drawn as below: agricultural listed companies' corporate performance and the executive compensation had a significantly positive correlation; agricultural listed companies' executives monetary remuneration and company risk level had a significantly negative correlation; agricultural listed companies performance and risk levels had a significantly negative relationship; risk taking is the intermediary variable between agricultural company executive compensation and corporate performance.According to the conclusion drawn from empirical analysis, several suggestions are proposed: it is neccesary that a scientific and reasonable executive compensation incentive mechanism to be established; improving the agricultural listed companies' institution of dual risk management; improving the agricultural listed companies' governance mechanism, improving the efficiency of the management; attaching importance to the agricultural technology innovation, increasing basic research input such kind of risk taking behavior appropriately.