Internal Control, Managerial Power And Executive Pay Sticky

Executive compensation,academia and the public has always been the focus of attention and discussion,especially since the promulgation of the internal control system,and more research is increasing.By the study results,the overall executive pay is linked to performance,the performance has a certain sensitivity,but there are also executive pay and performance correlation is weak,asymmetric,there is a salary tack.Managers of power theory is that managers can use the powers affect their pay,to achieve the purpose of own pay,and then pay for the viscous executives have a positive role in promoting.We have introduced internal control system and constantly improve,make more efficient business management,supervisory role more obvious.So,whether a complete system of internal control through its own construction formed of managers the power to form an effective constraint,thereby inhibiting power manager positive impact on executive compensation sticky it? This is a very worthy of study.In this paper,China's listed companies in the sample of a study,on the basis of empirical tests of executive compensation viscous exist above the power of managers and executive compensation viscous effect relationship were analyzed.Then,the internal control variables,research manager of power and its moderating effect on executive pay sticky.From the principal-agent theory shows that executive pay and corporate performance sensitive.However,with the in-depth study we found that many of the results showed that the sensitivity of executive pay and corporate performance is very low,which is the first evidence of our executive compensation in listed companies having viscosity characteristics;secondly,changes in China's listed companies executive pay staff salaries presents asymmetric characteristics;again,some companies pay performance sensitivity or even zero,enterprise performance decline,but executive compensation amount was not affected in any way,or even straight up.In this paper,the new era background,the test problems A-share market on executive pay viscous,through empirical testing,salary stickiness problems do exist,and pay tacky growing.Managers of power theory is that managers can use the powers affect their pay,to achieve the purpose of custom remuneration,to maximize their own interests,showing high salaries.Based on the relations executive power and executive compensation sticky between empirical studies and found that managers of power,the higher the viscosity of executive compensation,both significant positive relationship.In addition,the constant introduction of the internal control system and constantly improve the internal control system construction,supervision and incentives also continue to strengthen internal control,it is possible to reasonably limit the powers of the manager and the use of excessive play,constraint behavior executives.In this case,internal controls can inhibit promotion manager authority to executive compensation sticky it? We find that internal control can effectively inhibit the promotion manager authority to executive compensation sticky,but this inhibitory effect is weak.This paper draws the conclusion that the viscosity of executive pay in Listed Companies in China does exist,and further enhance the cohesive strength;the greater the management power and executive compensation stickness showed significant positive correlation;high quality internal control can inhibit the power management impact on executive compensation viscous effects.On the basis of conclusion and problem analysis,two aspects of policy recommendations are put forward.