Government Subsidy,Corporate Governance And Executive Excess Pay

With the implementation of some pay system,more and more people begin to pay attention to executive compensation.At the same time,the effectiveness of the compensation contract has also been questioned by people from all walks of life.According to the theory of management rights,compensation contract is not only no principal-agent problem containment,but reduced to the management rights of rent-seeking means in the compensation contract,government subsidies as non recurring gains and losses,which included into corporate profits,which will encourage executives to get this part of the profits,so that the executive produced without effort can get high salary idea.Whether or not executives take government subsidies into non recurring profits and losses to improve short-term performance,or directly to obtain this part of the benefits,will allow executives to pay higher,and then excessive pay.If executives can use their power and government subsidies to get excess pay,they will benefit by manipulating government subsidies to block the company’s future.In order to improve the effectiveness of compensation performance contract and alleviate the agency problem,scholars at home and abroad begin to focus their attention on improving corporate governance structure.It is helpful for enterprises to make reasonable salary plan,improve the validity of salary contract and use rate of government subsidy.This paper further studies the role of corporate governance structure,which enriches the theory of corporate governance and provides a reference for enterprise decision-making.This article is divided into six parts,elaborated in detail the relationship between government subsidies,corporate governance structure and excess pay.The first part is the introduction.This part introduces the research background,significance,method,train of thought and innovation point of the article in detail.The second part is literature review.This part expounds the definition,the excess compensation measurement way,influencing factors,and at the same time,a comprehensive introduction to the relationship between government subsidies and excess compensation,discusses the research status of corporate governance and executive compensation at home and abroad finally,to the results of a brief review,the purpose lies in the existing research results in the deficiency and can be found on the space,and then promote our in-depth study of the problem.The third part,theoretical basis.The theoretical starting point includes the principal-agent theory,contract theory,managerial power theory,in-depth analysis between this part of the excess compensation for government grants and executives linked,and analyze the effect of corporate governance on between them,to provide ideas for the research hypothesis.The fourth part,research design.Using the method of combination of theory and phenomenon,analyze the relationship between the three,put forward the research hypothesis,the 2012-2015 of A shares in the sample data,and the definition of variables of the sample data,the final design of the model,make full preparations for the empirical analysis.The fifth part is empirical analysis.First of all,the use of descriptive statistics and correlation analysis of the sample was analyzed.Secondly,the data into the model of multiple regression,the regression results from out of the detailed analysis of the relationship between government subsidies and excess compensation,corporate governance and regulation of government subsidies and extra compensation,finally make a robustness test.The sixth part,research conclusions and countermeasures.This paper summarizes and analyzes the conclusions of the article,and puts forward some comprehensive suggestions for improvement,such as improving the salary system of executives,improving the corporate governance structure,and monitoring and controlling the use of government subsidies.Finally,summarize the inadequacies of this article.This paper chooses 2012-2015 A A-share listed company data as the research sample,through empirical test shows that:(1)excess compensation will increase as government subsidies and more,a notable positive correlation between them,and also explain the origin of the excess compensation.(2)good corporate governance can effectively curb the relationship between government subsidies and excessive compensation,that is,the more perfect the corporate governance structure is,the less the excess pay will be caused by government subsidies.The innovation of this paper is as follows:(1)from the perspective of research,most people mainly study the profit seeking behavior of executives and its influencing factors.There are few people to study and produce excess excess compensation of executives compensation,from tihe new angle,that government subsidies will cause the excess compensation,a detailed analysis of the whole process of the executive power.(2)the selection of variables is more comprehensive.In this paper,director and manager of the two positions,the size of the board of supervisors,independent directors and equity concentration as the corporate governance structure,further verify the moderating effect of variables between the two variables,the system comprehensively and objectively,and also expounds the important role of corporate governance in this process.Such governance variables more comprehensive system,the domestic scholars have done little research.(3)the corporate governance variables and government subsidies multiply item into the regression model,is no longer the corporate governance variables as control variables,focuses on the role of corporate governance on the impact of government subsidies of executive excess compensation in the process,from the perspective of more innovative,and more realistic.