Research On The Impact Of Executive Monetary Compensation On Corporate Performance Of China's GEM Listed Companies

With the advancement of market economy in the world, great changes have taken place in modern enterprise property rights system, namely the emergence of the separation of ownership and managerial authority, that makes control senior management personnel of the enterprise resources (here inafter referred to as the "executive") compensation problem increasingly prominent. In recent years, between executive compensation and corporate performance seems to appear the phenomenon of "decoupling". How to match the executive compensation and corporate performance, executives in meeting its own interests at the same time also can make the company to maximize the performance, this phenomenon is more and more become the focus of many scholars. Gem listed company founded in 2009, in the six years time the sector has occupied the important status in our country's capital market, the growth enterprise market of high risk, high growth characteristics and main board listed companies there are great differences, currently on the study of executive compensation and corporate performance of listed companies issue basic are for the main board market, few studies of the growth enterprise market. This article through studies the gem executive compensation effect on corporate performance of listed companies, and for reasonable construction of the gem listed company executive compensation system provides some Suggestions, which will be conducive to raising the gem business performance of listed companies in our country, help to achieve win-win of executive self-interest and corporate performance.This study adopted the method combining the normative analysis and empirical analysis., First of all, reviewed the domestic and foreign study on executive pay and corporate performance of related literature, and made a brief review, on this basis, the executive compensation and corporate performance, to illustrate the meaning and measure, and from the principal-agent theory, human capital theory and relevant theory of executive compensation and corporate performance is analyzed; Second, in the process of measuring corporate performance indicators choice, from the level of profitability, long-term and short-term debt service, operation level and potential five aspects were selected 15 financial indicators, using the factor analysis method to extract 6 principal components, to the comprehensive model of the resulting principal components F corporate performance. Finally, select 373 gem listed companies in China in 2014 as the research object, combined with the analysis of the influence factors, five hypotheses are put forward. First when the empirical analysis from different angles on the company's performance, executive compensation and executive shareholding make descriptive statistics, the paper analyzes the current situation of executive compensation and corporate performance in China. Then, respectively on executive compensation, executive ownership and corporate performance of the single variable regression analysis and multiple regression analysis of join multiple variables.The empirical analysis results show that executive pay has significant positive effects on corporate performance, executives shareholding little impact on corporate performance. In the case of other conditions, the size of the company will make the salary level of senior executives to varying degrees, and thus affect the company's operating performance has also changed accordingly; But if the independent directors proportion and two post concurrently with executive compensation effect on the performance of the company as there is no relationship between. To see gem listed companies in our country's compensation mechanism still is given priority to with cash salary, equity incentive effect is not obvious, the corporate governance the supervision mechanism is not perfect.Based on the empirical research conclusion, this paper puts forward the measures such as increasing the proportion of equity incentive to improve the gem listed companies pay structure; Suggest to establish a reasonable corporate governance mechanism, enhance the implementation of the company on executive compensation mechanism and supervision; Matching of executive compensation and corporate performance, rationalize salary; To further enhance the transparency of information disclosure and so on executive pay.