An Empirical Study On The Relationship Between Executives' Pay-Performance Comparison And Earnings Management

Because of the issues of fairness and business efficiency,the income distribution of various industries and the pay of senior executives have always been the hot spots of the society.With the gradual improvement of the market mechanism in China,the salary mechanism of senior executives has gradually been standardized,but the salary level has been rising,which has widened the salary gap with common employees.The public continues to pay attention to the income distribution gap.The SASAC is also exploring compensation reforms and formulating more reasonable allocation plans.However,according to the information disclosed in the financial statements,the high salary figures of senior executives and the deviations between salary and performance are other information.The original intention of violating the design of the pay contract reflects the traces of executives using power to manipulate compensation.At the same time,due to the performance compensation system,senior management personnel can control the performance of the compensation base-earnings management becomes possible.This article takes this as a background,and introduces some research results of psychology to explore the relationship between the comparative psychology behind executive compensation and earnings management.When investigating different ways of managing earnings,taking into account the supervision of the capital market and the constraints of the accounting standards,the way in which the executives can adjust the surplus by manipulating the accrual items is easier to identify and tend to construct real transactions to adjust the surplus,so this article The relationship between salary comparisons and two types of earnings management methods was studied separately.In addition,in order to further understand the internal rules of pay and comparison,this paper also discusses the effect of executive incentive characteristics on executives' level of earnings management based on psychological comparisons,ie what characteristics they have and which companies' executives are more inclined to adopt.Earnings management has refined the research content of salary comparisons.This paper draws on the previous research model of scholars to construct an empirical model of salary comparisons affecting real earnings management and accrued project earnings management.The study finds that there is a significant positive relationship between executive pay comparisons and real earnings management,that is,the stronger the psychological comparison among executives.,The greater the extent of its real earnings management;there is no significant correlation between pay and ratio and earnings management of accrued items.In order to explore the effect of executive characteristics on earnings management based on salary comparisons,the relationship between executive characteristics and salary ratios was studied,and the addition of salary comparisons to executive characteristics was added.The results show that the education level and service time of the senior management team have an impact on the earnings management activities based on psychological comparisons;when researching the impact of corporate characteristics on earnings management of senior executives based on salary comparisons,they are classified according to the characteristics of the company,and the sample components are There are three groups of state-owned and non-state-owned enterprises,large-scale and small-scale enterprises,and high-growth and low-growth enterprises.The results of the comparative regression show that when the senior executives are state-owned and small-scale enterprises,it is easier to perform relatively large-scale earnings management on the basis of salary comparison;while the company is in a high-growth stage,the results show that the senior executives have not made any significant comparisons.Earnings management.