An Empirical Study On The Impact Of Executive Compensation To Corporate Performance In Chinese Financial Enterprises

In 2008,American finance crisis spread across the world,which caused financial asset prices falling,financial institutions bankruptcy,worldwide recession and a series of vicious chain reaction.In addition to lax government regulation to financial institutions and weak internal risk control mechanism in institutions themselves,the radical salary incentive rules for financial executives is one of the important cause of the crisis.After the crisis,governments have promulgated regulations for financial enterprises to strengthen supervision on executive compensation.Salary incentive,especially for executive compensation becomes an important part of internal governance in financial enterprise,most enterprises consider corporate performance as an important factor to measure the incentive effect of executive compensation.Research on the impact of executive compensation to corporate performance for financial enterprises becomes very meaningful subject in the study of corporate governance.First and foremost,this research will do literature study for the correlation between executive compensation and corporate performance,and analysis current situation of executive compensation in Chinese financial enterprises.Then,the research chooses executive compensation and corporate performance data from 45 listed financial companies in China,and uses multivariate panel regression model for empirical research from 2009 to 2015.The research shows that executive compensation and management shareholding has significant positive correlation with corporate performance,while compensation gap between executives and ordinary employees has negative effect on corporate performance.Last but not least,according to the theoretical and empirical analysis,the research will put forward possible opinions and suggestions for the existing salary incentive rules for financial companies in china,in order to improve corporate performance for financial enterprises and promote sustainable and healthy development for financial industry.