Research On The Impact Of Executive Compensation Of Small And Medium-sized Listed Companies On Corporate Performance

In recent years,the executives of listed companies in the SMEs sector have frequently reduced their shareholdings.The relationship of executive compensation and corporate performance of listed companies have regained the public's attention.As the company's core figure,senior management personnel assume the company's major responsibility for formulating corporate development strategies and ensuring stable performance growth of the company.As the most important and core human resources of listed companies,their every move conveys to the public signal of the development status of the company.With the increasingly complex and highly competitive economic environment,what kind of executive compensation can retain high-level talent for enterprises,improve corporate performance and ensure the steady development of the company has become the key to the development of listed companies.It is of practical significance to study the relationship between executive compensation and corporate performance.Firstly,on the basis of literature review and summary of relevant literature,analyze the main factors that affect executive compensation.Secondly,through the analysis principal-agent theory,scale economy theory,enterprise internal supervision mechanism,team cohesion,equity incentive and other theories,put forward the relevant hypothesis.Thirdly,using the data disclosed by the listed companies from 2015-2017,analyze the characteristics of the small and medium board enterprises' development status and executive compensation status.Then,find out the existing problems in SMEs.At last,selected 90 small and medium-sized listed companies from Jan.1,2014 to Dec.31,2016 as samples for empirical study: On the one hand,to get a comprehensive performance factor by factor analysis the financial variables of samples.The comprehensive performance factor is interpreted as the explained variable,and the logarithmic form of top executives' cash comprehensive and stock ownership are interpreted as the explanatory variables with the company size,executive characteristics(average age,average education,board scale etc.)as the control variables for the panel data analysis.The purpose of this study is to explore the relationship between executive compensation and corporate performance,On the other hand,divided the samples into two groups(frequently reduction group and normal group).Comparative analyze the two groups' panel data model to find the relationship of executive compensation and corporate performance under frequently reduction.The results of the empirical study show that executive compensation and executive stock ownership,the average age of senior executives,the scale of the enterprise,the proportion of independent directors,the scale of the board of supervisors are positively related to the performance of the enterprise,while there is a negative correlation between the scale of the executive team and the performance of the enterprise;under the influence of the "executive reduction",executive compensation is negatively correlated with corporate performance.In the end,according to the conclusion of empirical analysis,targeted countermeasures and suggestions are put forward for the development of SMEs' executive pay structure and long-term stable development.