Research On The Sensitivity Of Executive Compensation Performance Of Listed Companies

The issue of executive compensation in listed companies has caused widespread concern and discussion from all walks of life.Especially when the performance of the company is negatively increasing,the phenomenon of high-level compensation not falling but rising has been strongly questioned by the general public and theoretical circles about the rationality of executive compensation.The issue of executive compensation in listed companies has a long history,and the research and discussions on executive compensation in academic circles are also rich,but no consensus has been reached.Corporate Social Responsibility(CSR)is an effective means to resolve the conflict between enterprises and various resources,environmental protection and social issues,maintain harmonious social relations,and orderly economic development.Various industries have begun to emphasize their "social responsibility",and many companies have also embedded corporate social responsibility into the category of corporate governance and used it as an extremely important indicator for executive compensation assessment.According to the analysis of the existing research,many domestic scholars have begun to study the impact of corporate social responsibility on corporate governance,and they have mostly focused on the lack of corporate social responsibility and the impact of corporate social responsibility on the long-term(short-term)performance of enterprises and enterprises Impact on sustainable development,etc.,but the research on the relationship between corporate social responsibility,executive compensation and corporate performance is still very limited,and only a few literatures cover the impact of corporate social responsibility on the sensitivity of executive compensation performance.However,no in-depth research was conducted.The increasing awareness of corporate social responsibility,will it affect the effectiveness of the executive performance compensation contract of listed companies,and what is the mechanism? These have not been fully tested.Based on this,this article explores the sensitivity of executive pay performance under the regulation effect of corporate social responsibility,enriches the research on the relationship between corporate social responsibility and executive pay performance,and explains the internal reasons why corporate social responsibility plays a role in the effectiveness of executive pay performance.This article adopts a combination of theoretical research and empirical analysis.First,the literature review and combing of the research on executive compensation,executive performance sensitivity,corporate social responsibility and the relationship between executive compensation performance;and then combining related theories to build a research framework And put forward the hypothesis of this article;then,this article uses the data of Shanghai and Shenzhen listed companies from 2015 to 2017 as the research sample to test.According to the research in this paper,it is found that the executive compensation of listed companies is significantly positively related to corporate performance,that is,there is a sensitivity of executive compensation performance in listed companies;corporate social responsibility is positively regulating the sensitivity of executive compensation performance,and compared with private companies,state-owned The adjustment of corporate social responsibility is relatively weak;further analysis shows that the positive adjustment of corporate social responsibility on the sensitivity of executive pay performance exists only in shareholder responsibility and social responsibility,and there are differences in the regulatory role of different levels of corporate social responsibility.When the corporate social responsibility level is D,corporate social responsibility is positively regulating the sensitivity of executive pay performance.When the corporate social responsibility level rises to C,it weakens the listed company's executive pay performance sensitivity,and when corporate social responsibility is too high(B)Or too low(E)will not affect the effectiveness of China's listed company executive compensation contract system.This paper studies the impact of corporate social responsibility on the sensitivity of executive pay performance,which helps to test the role of corporate social responsibility in the executive compensation governance of listed companies in China,and also helps listed companies to better perform corporate social responsibility activities.In terms of executive compensation governance,corporate social responsibility can improve the sensitivity of executive compensation performance and provide some decision-making recommendations for corporate compensation governance.At the same time,due to the different nature of the company,the degree of influence of corporate social responsibility(CSR)levels varies,and Different industries have different social responsibility commitment requirements,so companies should fulfill their social responsibility obligations in accordance with their own circumstances,formulate a more reasonable compensation system,and achieve a win-win situation.