Empirical Research On Capital Structure Of Listed Companies In Executive Compensation Relations

Improving top management's enthusiasm, avoiding the loss of talented people and the short-term behavior of top management are difficult and hot topics for scholars and experts. The study of top management compensation is one of important content. Because the environment of the enterprise is very complex, so the enterprise needs to consider many factors for formulating top management compensation.The theory and empirical studies of domestic and foreign scholars have proofed that capital structure and top management compensation exist certain relevance, and capital structure is a factor of top management compensation. The aim of the study is to verify the relationship between top management compensation and capital structure ,and provide the reference for enterprises formulating top management compensation.This paper reviews the literature of domestic and foreign firstly. And the theoretical basis base on the theoretical analysis of top management compensation . We divide the top management compensation into cash compensation and equity compensation ,and study the relationship between them and capital structure respectively. This paper uses panel data of Chinese listed companies in 2006-2009 as research samples, and the Eviews6.0 capital is used to analysis the linear regression between capital structure and top management compensation. The results are that the relationship between capital structure and cash compensation is significant negative correlation, the relationship between capital structure and equity compensation is significantly positive correlation .And other control variables, such as the enterprise performance, the enterprise size and corporate governance features, are also related to top management compensation. Last, according to the empirical results, we raise the corresponding suggestion.There are two innovations of the paper: the first is that there is a theoretical analysis between capital structure and top management compensation. Many scholars studied the relation of them, seldom someone analysised why the capital structure influenced top management compensation. And the literatures often proofed that top management compensation influenced capital structure. So there is a caused confusion:people can't understand the relation of capital structure and top management compensation . studing their relations from enterprise shareholders, we find when they formulate top management compensation,shareholders will consider capital structure .so the capital structure is a factor that influences top management compensation. The second is that we divide top management compensation into cash compensation and equity compensation, and study the relationship between them and capital structure respectively. So we can analysis that how each of compensations to affect top management'behavior,and provide the reference for enterprises formulating top management compensation.