An Empirical Study On The Effect Of Executive Compensation On Earnings Quality

The accounting surplus reflects the operating results of the company for a period of time,which is the focus of investors' attention.The quality of earnings reflects the quality of accounting earnings information,and its importance is self-evident.High-quality accounting surplus is conducive to the healthy development of the capital market,which is beneficial to the policy-making of relevant government departments and the interests of the owners.The main research content of this paper is whether executive compensation will influence the earnings quality.Based on the relevant research results of domestic and foreign scholars,this paper analyzes the salary and earnings quality of senior executives from theoretical analysis,and forms a certain framework.Second,to our country the status quo of the executive compensation and earnings quality of listed companies,through specific data on executive pay and earnings quality empirical test,summarizes and analyzes the results of the study,finally puts forward some reasonable Suggestions combined with corporate governance,in order to further improve the quality of the earnings information.The data samples of this paper are listed companies in the Shanghai and shenzhen stock exchanges between 2012 and 2016.After the invalid data was excluded,11,815 valid samples were obtained.On executive pay cash compensation is divided into two aspects carries on the analysis and whether ownership,according to the situation of our country will be whether to discuss the state-owned listed companies,finally carries on the regression analysis using SPSS software,to explore the executive compensation on the quality of the surplus.The main conclusions of this paper are :(1)the executive cash compensation is negatively correlated with earnings quality.That is,the company's executives may conduct earnings management for their own benefit,which will have a negative impact on the company's earnings quality.(2)executive shareholding is positively correlated with earnings quality.That is to say,executive ownership can restrain the behavior of executives' earnings management and reduce the probability of moral hazard of senior executives and reduce their harm degree.(3)there is also a negative correlation between cash compensation and earnings quality in the shareholding of senior executives.Through the comparative analysis of the executives' shareholding group and the non-shareholding group,the influence of the shareholding and cash compensation on the earnings quality is more clearly demonstrated.(4)through the analysis of state-owned listed companies,it is concluded that the cash compensation of senior executives is negatively correlated with earnings quality.Since 2013,China has reformed the compensation system of senior executives in state-owned enterprises,and this paper has made an effective analysis on this situation.