Empirical Evidence For The Impact Of Executive Perks

Growing attention is paid to executive perks in both academia and real life,and the requirement of research on executive perks is more and more urgent.So far,the research domestic is mainly on the factors that affect executive perks,and most of the research oversea concluded that perks have negative relationship with corporate performance.Basing Chinese national situation,this paper examines the economic effects of perks using the data of listed companies in China.And then explains the economic effects of perks from the perspectives of property and corporate governance.This paper draws lessons from domestic and international relevant researches on the executive perks and corporate governance.And then examines economic effects of perks using empirical approaches,logic analysis and documentation.First,this paper analyzes the definition,the cause and the factors of perks.And then select the variables used,propose hypotheses and built models to examine economic effects of perks.At last,we use the listed companies of China from 2010 to 2012 to do empirical tests.And enrich the research from the perspectives of property and corporate governance.Through the research,we draw the following conclusions:(1)executive perks is positively related to the performance,and contributes to the raising of enterprise value;(2)perks can motivate management to supply a proper work effort and help companies build useful connections(guanxi)with governmental officials and business partners and satisfy personal interests of managers as well;(3)the role of perks is affected by corporate governance.According the conclusions we draw,we put forward the following proposals:(1)set up rules for the announcement of executive perks in Chinese market;(2)improvement corporate governance structure and perfect mechanism of management and supervision;(3)establish rational and effective system of salary and budget for executive perks;(4)reinforce independent director's supervising.