The External Equity Of Executive Compensation And The Dynamic Adjustment Of Capital Structure

Adjustment and optimization of capital structure of enterprises has been a hot issue in the field of practice and academic research.In recent years,with the "price" of individual compensation exposure about salary equity is also rampant.The study of the external fairness of compensation incentive has become a hot issue in the current academic research.The external fairness of executive compensation should be considered as an important factor in the development of compensation contract,which will affect the enthusiasm and efforts of the company's executives,and then affect the adjustment and optimization of the capital structure of enterprises.The previous research mainly from the capital structure adjustment speed of internal and external environment of enterprise,fairness from the perspective of incentive effects of executive compensation of listed companies external equity on the adjustment speed of the enterprise's capital structure,the experience gained the corresponding data in order to provide theoretical support for the practice of enterprise management.This paper first reviews the research literature on the dynamic adjustment of the equity and capital structure of executive pay,and on this basis,the development of the relevant theory to sort out the context.Secondly,it defines the concept of the external equity and capital structure of the executive pay,and puts forward the hypothesis of this paper based on the relevant theoretical analysis.Again,the construction of executive compensation decision model,dynamic model and target capital structure capital structure adjustment model,using panel data from 2006 to 2015 China's A shares of listed companies,the estimation of mixed OLS and fixed effects regression method to test the influence of executive compensation on external equity capital structure adjustment speed of the enterprise dynamic.Finally,draws the related research conclusion,and puts forward the corresponding policy suggestion.The main conclusions are as follows: first,the compensation of external equity executives will significantly affect the capital structure adjustment speed,the negative salary fairness to the executive pay unfairness,will significantly reduce the speed of adjustment of capital structure.Second,the distinction between the different property rights found that in the sample of state-owned enterprises pay unfair sense and the capital structure adjustment rate is significantly negative correlation,but this effect is not significant in private enterprises.Third,the difference of the regional economic development level makes the influence of the external equity of executive pay on the speed of capital structure adjustment.In the eastern region,the influence of executive compensation on the dynamic adjustment of capital structure is higher than that in the central and western regions.Fourth,the implementation of the "salary limit order" of the state-owned enterprises,so that the influence of the external equity of executive pay to corporate capital structure adjustment speed is strengthened,and the correlation between the salary and the performance is improved.Finally,the conclusion of this paper,from the perfect executive circulation market,optimize the salary decision procedure,change the salary incentive mode,and put forward the corresponding policy suggestions to promote the coordinated development of regional perspective and broaden the financing channels.