Study On The Relationship Between Executive Compensation And Corporate Performance In Listed Companies

Corporate executive compensation has always been the theoretical and practical circles to discuss and study the hot spots,with China's market economy is increasingly perfect and continuous development,executives in the development of the company's position becomes increasingly important.One of the core factors of a company's overall management level and operating efficiency is the performance of senior management of listed companies.Especially in the context of the global financial crisis,the 2009 annual report of listed companies,although the recession led to 107 companies have declined performance,but the company executives have increased the pay,which is more people Executives pay the rationality of the question,executive pay more and more become a wide concern,controversial topic.In the case of a substantial decline in the company's performance,executives pay not only did not decline but the fact that investors and the general public is difficult to accept.Therefore,it is necessary to effectively motivate an executive who is a scarce human resource in order to make it full of enthusiasm and creativity and achieve good corporate performance.On the other hand,the executive compensation of listed companies has always been a relatively sensitive topic.Whether it is online media or newspapers and magazines,on the listed company executives "high price","excessive recessive consumption" and "excess pay" news reports are common.At the same time,due to the global economic downturn,the growing market competition and the company faces various challenges,executives pay the community caused widespread concern.Based on the above background,this paper based on the previous research results,the information technology industry listed companies to disclose the relevant data for the study of the sample,and further on the relationship between executive compensation and corporate performance empirical analysis and research,in order to explore China The benefits created by senior executives of listed companies in the information technology industry match whether they are so highly paid and whether the remuneration of executives is matched with the company's performance.This paper first elaborates the research background,the research significance,the research method and the frame as well as the realization innovation.Secondly,the related concepts are defined and the relevant literatures and research status of the relationship between executive compensation incentive and corporate performance are reviewed and reviewed in time and order.And then based on the theory of principal-agent,incentive theory,human capital theory and the optimal contract theory,this paper takes the relevant data of China's Shanghai and Shenzhen listed information technology industry as a research sample from 2013 to 2015,The return on net assets,the rate of return on total assets and the earnings per share were used as indicators of corporate performance,using descriptive statistical analysis,correlation analysis and linearity.Regression analysis,the sample company's executive compensation and corporate performance of the relationship between the empirical analysis.Through the regression analysis,we see that there is a significant correlation between executive compensation and corporate performance in China's listed companies,and the correlation coefficient is positive.There is a significant correlation between the proportion of executive holdings and the performance of listed companies in China.The correlation coefficient is positive.There is a positive correlation between executive spending and corporate performance.Finally,after the empirical analysis,this paper hopes to find out the problems of executive compensation in China's information technology industry and give corresponding countermeasures and suggestions to the problems.