Empirical Research On The Relationship Of Top Manager's Compensation And Company's Performance Of State-Owned Listed Enterprise In Northeastern Old Industrial Base

The state-owned enterprises have been being dominant in northeastern old industrial base, and listed enterprise exerts important effect in them. Pushing and developing the northeastern old industrial base economy must be based on the state-owned listed enterprises, and these enterprises play an important role in the construction of the market economy. As the core decision-making members, the top executives play a crucial role in the development of firms. The excellent top executives have become the target of fierce rivalry among firms, and the problem of top executive compensation has become the focus of theorists and entrepreneurs. The basic principle of compensation is linking to firm performance. However, for a long time, in the reform of the property rights of state-owned listed enterprises, the top executives compensation system did not receive much attention is the main reason of insufficient, inefficiency of the state-owned listed enterprises, and their multi-level characteristic with commission-agent of property relations has been made the problem of top executives compensation more prominent.On the base of reviewing the empirical research on the relationship between the top executive's compensation and firm performance home and abroad,57 state-owned listed enterprises in northeastern old industrial base are selected as the sample. The article survey of the top executive compensation status using the descriptive method in samples and groups based on different control variables; then, it studies the relationship between the top executive compensation and firm performance using linear regression to inspect the validity of top executive compensation. At last, the main conclusions of the research as following:Overall, the top-three executive annual pay has a significantly positive relationship with firm performance. By scale, it is closely related to the firm scale, but, only has a significant effect on firm performance in large firms. It is significantly positive to the industry which has more strong competition. It has a significant effect in these which didn't possess stock; It affects firm performance when the rate is more than 50% and not more than 70%; It affects firm performance in those enterprises whose top managers'age didn't exceed 58; It has a significant effect in both chairman and general manage whether are separated. But it has more significant effect in general manage duality. At last, the compensation system suggestions aimed to the top executives of state-owned listed enterprises in northeastern old industrial base are put forward according to the result of this research.