A Study On The Relationship Between Executive Compensation And Companies Performance Of The State-owned Listed Companies

Executive compensation system as an important incentive mechanism for manager,has been a hot and key issues of corporate governance research.In recent years,people pay more attention to the listed company's higher executive compensation.Comparing with the growing compensation of executive compensation of the listed companies,the corporate performance of listed companies has no significant growth trend.This kind of phenomenon is especially obvious in the current state-owned listed companies.Through the analysis of the research,many scholars found:the executive compensation of our country's state-owned listed companies has no significant correlation with its corporate performance.But,for this,it is necessary to consider the possibility that the reason that the executive compensation of state-owned listed companies between with its corporate performance is lack of correlation is the difference of index selection.Based on the study,the first on executive pay and company performance correlation between theoretical basis for standardized analysis.hypothesis to be tested.On this basis,to our Shanghai and Shenzhen A-share State-owned listed companies as the research sample,selected in 2005-2015 sample company data.In the empirical analysis part,considering the different corporate performance measure of our country state-owned listed companies,so this paper analyze the influence between state-owned listed companies' executive compensation and the companies' profit ability,operation ability,development ability.Then this through the factor analysis method integrated into an index,this paper analysis the relation between the index and the companies' executive compensation.Based on this,this paper established five models,and tested these models by the correlation coefficient test,the multicollinearity test and the regression test.The study found:the state-owned listed companies' executive compensation have significant positive influence with the companies' profit ability,operation ability and development ability;the size of the state-owned listed companies and the ownership concentration also have significant positive correlation with the corporate performance,and the improvement of the firm size and ownership concentration are benefit for the corporate performance;the state-owned listed companies' capital structure and two part-time variable have significant negative correlation relationship with the corporate performance,and this shows that if the companies has more debt and the general manager and chairman of the board of directors are composed of a person,then the ascension of the performance will be restricted.In addition to this,the state-owned listed corporate performance also has positive influence to the executive compensation.According to the obtained conclusion,puts forward policy Suggestions for China's current executive compensation regulation,mainly including establishing tied mechanism of executive compensation and corporate performance of listed companies;Deepen the reform of executive system for selection and appointment of incentive mechanism,and formulate reasonable pluralism.To promote the state-owned listed companies improve business performance is of great significance.