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Research On The Relationship Between Executive Compensation And Firm Performance

Posted on:2018-11-02Degree:MasterType:Thesis
Country:ChinaCandidate:G ZhouFull Text:PDF
GTID:2359330515489553Subject:Business management
Abstract/Summary:PDF Full Text Request
In order to be better,the modern enterprise management occurs the separation of ownership and management.but there are different interests between the of principal and agent,then the owner of the enterprise formulate corresponding incentive system for enterprise managers,it ultimately promote the increase of enterprise performance.And due to the differences of resource endowments,it will affect the executive compensation incentive effect.Because of the different nature of the property,property of different industries and different concentration of ownership of enterprise,corporate executives will face the different competition situation,work pressure.Then it will result in different enterprise performance.Because of the differences of the enterprises property rights,the executives will also need different requirements.Then it will affect the executive compensation.and executive compensation is an incentive for executives,incentive effect will affect the final performance of the enterprise.Due to the different industry enterprises,corporate executives will face different market pressures.Then it will affect the executive compensation.and executive compensation is an incentive for executives,incentive effect will affect the final performance of the enterprise.The difference of ownership concentration will affect the degree of the shareholders' supervision to the executives,and the differences in the degree of supervision will lead to the differences of executive compensation.Therefore,it is of great significance for the enterprises to make the corresponding incentive methods to choose the property rights,the property of the industry and the difference of ownership concentration as the sensitivity analysis of the executive compensation to the enterprise performance.This paper uses the method of literature research and empirical analysis to explore the relationship between executive compensation and corporate performance from the perspective of corporate heterogeneity.Firstly,this paper makes the research of domestic and foreign literature on executive compensation,and makes a theoretical analysis from the principal-agent theory,incentive theory and the perspective of human capital,and makes the enterprise heterogeneity on the logical derivation there is significant relationship between executive compensation and corporate performance.Secondly,followed by 2013-2015 years of executive compensation of listed companies data for empirical analysis,it explores the different nature of property rights,industry attributes and ownership concentration on the sensitivity of the relationship between executive compensation and corporate performance,and then puts forward the corresponding incentive mode of enterprises to make recommendations,it has some reference value for the formulation of executive compensation.
Keywords/Search Tags:Property rights, property, ownership concentration, executive compensation, firm performance
PDF Full Text Request
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