A Study On Executive Compensation Incentive And Earnings Management Of Listed Companies

With the construction of a more perfect system of socialist market economy,the enterprise system of listed companies in our country is gradually becoming mature,and the separation of ownership and management right of modern enterprises makes the inherent contradictions between executives and shareholders of listed companies.Increasingly prominent,these contradictions in the urgent need to address is how to balance the executive compensation incentive and earnings management relationship.Based on three basic theories(information asymmetry,contract and commission theory),this paper makes an in-depth study on how the executive compensation incentive affects the company's earnings management,and thus draws the following assumptions: the higher the executive compensation,The higher the degree of earnings management,the higher the proportion of equity incentive in executive compensation,the higher the degree of earnings management,the higher the earnings incentive of listed companies on the GEM than to the board company high.On this basis,the author to 2011-2015 for the period,select the 1544 listed companies listed on the board,186 GEM listed companies,and the company's executive compensation,executive shareholding ratio,the size of enterprises and other variables The impact of earnings management was tested.Through the study,the author found that:executive compensation and earnings management was positively correlated,executive holdings and earnings management on the main board were significantly related to the correlation in the GEM is not significant,which the reasons for the subsequent analysis will be a detailed way.On the basis of the conclusion of the analysis,the author puts forward the corresponding countermeasures,which can make the relationship between executive compensation and earnings management be improved.These measures include: the design of incentive mechanisms in the pay when the appropriate optimization;in the governance structure of the listed companies to improve;accounting standards and systems for the corresponding improvement;the establishment of the supervision of executive compensation mechanism.Compared with the same type of research,this paper has made some contribution: by studying the relationship between executive holdings and earnings management,as well as the main board market and the GEM market executive incentive incentive and earnings management Conducted a comparative analysis,through different angles on the executive compensation incentive and earnings management research,people on its complex anddifficult part of a more clear understanding.