An Empirical Study On The Relationship Between Executive Compensation And Corporate Performance Of Agricultural Listed Companies

One of the most striking features of modern enterprises is separation of rights(i.e.ownership and the right to operate),ownership and residual claim are owned by the owner,and the business control of the enterprise is owned by the manager.This situation can improve the economic efficiency of enterprises on the one hand,but the by-product-"commission-agent" problem will also arise.China is a big agricultural country;the development of agriculture is related to the country's long-term stability and the people's happy life.From the perspective of ecology and sustainable development,the development of modern agriculture is the inevitable result.Agricultural listed companies being an advanced representative of modern agriculture are the important form of organization,playing an important role to promote the promotion of modern agriculture,and to promote agricultural production increasing.However,the number of listed companies in China is still relatively small,and the competitiveness of listed companies is weak,the study of the relationship between agricultural listed companies executive remuneration and business performance can regulate the incentive mechanism of executive compensation,on the other hand can also improve business performance.Making greater contributions to the development of agricultural modernization.This paper takes the principal-agent theory,the incentive theory,the human capital theory and the corporate governance theory as the guiding theory.Taking the executive compensation and the enterprise performance of the agricultural listed companies as the research object,the author summarizes the research results of the predecessors,putting forward the hypothesis of the relationship between the two theoretical deductions,the research methods are combined with normative and empirical methods.Using the logarithm of the top three total remuneration of the listed companies as the measure of executive compensation,and use the entropy method to establish the comprehensive index of corporate performance for earnings per share,return on net assets and total return on assets.Scale,executive shareholding ratio,chairman and general manager of the situation,senior management background,senior management of the length of time,the size of the board of supervisors as a regression model of control variables,establishingpanel data regression model.Through empirical research,this paper draws the following conclusions :(1)There is a significant positive correlation between the executive compensation and the comprehensive performance of enterprisesof agricultural listed companies;(2)There is a significant positive correlation between the executive compensation and the scale of enterprises,the proportion of executive shares and the degree background of senior managementof agricultural listed companies;(3)There is a significant negative correlation between the executive compensation and the general manager of the chairman of the board of directorsof the agricultural listed company;(4)There is no significant relationship between executive compensation and the length of service of agricultural listed companies.Therefore,this paper putssome management advice from the principal and the agent two aspects :(1)For the client,they need a variety of positive incentives to stimulate the enthusiasm of agents to pay more effortsfor the long-term development of agricultural listed companies;(2)Agents need to improve their own quality,enhance their own knowledge,experience level,improving corporate performance to obtain higher pay at the same time.