Research On The Impact Of External Unfairness Of Executive Compensation On Company Performance

In modern enterprise system,the separation of management right and ownership is a basic characteristic.Rapid economic and social development has promoted the social status of enterprise managers.However,how to effectively motivate senior executives,reduce agency costs,make incentive mechanism and agency costs complement each other and maximize benefits has become the focus and hotspot of current research.Spread in order to avoid the phenomenon of sky-high compensation,our country in 2005 the enterprise financial report disclosure regulations for the rules,the listed company to the corresponding current executive compensation disclosure,as a result,for company external similar position and industry executives,salary transparency is beneficial to compare,to further improve the fairness of compensation,transparency,good for industry competition.The fairness of executive compensation,to some extent,represents social fairness and fairness and affects the management decisions of corporate executives as well as corporate performance.There are always some limitations in the research on executive compensation inequality: first,it is limited to the research perspective.People have higher and higher requirements on the relationship between efficiency and fairness.Currently,the research focuses on the absolute pay gap between ordinary employees and senior executives,and pays less attention to the external unfairness,concentrating on internal predilection of the executive recompense.Therefore,the current research adopts different methods and conclusions.Second,different research methods.On executive pay external experts and scholars at home and abroad are unfair to measure method is mainly:(1)additional compensation,the development of executive compensation decision model,the regression residuals with residual characterization of unfair degree,can eliminate the influence caused by characteristics difference between enterprise and the executive,but decided to model factors to some extent,susceptible to the researchers' subjective judgment and lead to the reliability.(2)pay gap.The absolute compensation difference is calculated directly,which ignores the reasonable differences among the employees.(3)questionnaire survey.The employee's evaluation of salary shows the degree of unfairness,but this method is subjective to some extent.At present,some experts innovate and adopt quantitative methods such as relatively fair level and percentile of salary performance.Different results have been obtained through these methods.Starting from the institutional environment,this paper focuses on the in-depth analysis of the external unfairness of executive compensation and its economic results,and constructs the theoretical model of the influence of the relationship between variables.In this document,relevant figures of the 1688 a-share listed firms from 2014 to 2018 are sorted out.Through induction,deduction and theoretical analysis,empirical research and analysis are made on the model by making full use of SPSS23.0: the regulatory effect of institutional environment on the main effect,as well as the relationship between corporate performance and negative and positive unfairness.Conclusions are obtained through empirical tests :(1)there are certain differences in the impact on corporate performance of the external predilection of executive recompense of different natures,that is,there is a significant positive correlation between corporate performance and positive unfairness,and a significant negative correlation between corporate performance and negative unfairness;(2)as for the relationship between enterprise performance and positive inequality,property right has no significant positive regulating effect;The property right plays an obvious negative regulating role in the relationship between enterprise performance and negative unfairness.(3)the marketization process plays a very obvious negative regulating role in the relationship between enterprise performance and positive inequality.This paper summarizes the research conclusions,puts forward relevant Suggestions and Suggestions,and puts forward improvement Suggestions for the limitations of this paper.