Contributing Factors Of Top Management Compesation: Evidence From China's Listed Machinery Company

Top Management Compensation was always a problem concerned by Academia and Practitioner. In modem company, the proprietary employed the managers to manage company, they two formed a principal-agent relationship. However, there was a contradiction of inconsistent objects between them. How to make the managers to do the jobs which were cared by the proprietary? The answer is researching contributing factors of Top Management Compensation and designing the proper incentives. At present, some problems still exist in domestic research: most of them were normative researches, positive researches only took a small part; and some characteristic factors were not considered simultaneously, such as some worthy factors. In addition, the criteria of industry demarcation were not objective. This thesis amended the defects before and furthered the study on contributing factors.In this thesis, listed company of machinery from Shanghai Stock Exchange and Shenzhen Stock Exchange were chosen as research sample. Using SPSS as Pearson analysis and factor analysis tool, EViews as panel data model analysis tool, the computer gave the result that all 13 variables had different influences on Top Management Compensation in common, these variables involved company size, company performance and so on. The detailed result showed these following conclusions: 1. Company development factor (including company size, company performance, company value, company risk, company growth) played a significant good role in Top Management Compensation. 2. Company equity factor (including nature of the largest shareholder, the ratio of outstanding shares) played a good role in Top Management Compensation. 3. Management factor (including the ratio of independent directors, managers' education) and Area factor (including company area) also played a good role in Top Management Compensation. 4. Age factor (including managers' age) played a bad role in Top Management Compensation. 5. Other hypotheses were not supported by the model.Generally, the thesis's purpose is to designing variables comprehensively, doing empirical research of contributing factors of Top Management Compensation comprehensively, and then giving proper policy recommendations by the model.