Management Discretion In The Relationship Between Executive Pay And Corporate Performance Among Empirical Research

The idea that managerial discretion, defined as latitude of action, may be an important determinant of organizational outcomes, such as executive's compensation, turnover, and corporate governance and so on. This study put forward a conceptual model of managerial discretion. Based on it, we explored and analyze a very important organizational problem, executive's compensation.The main results of this paper areFirstly, It put forward the integration structure model of managerial discretion. which reflect the relationship between managerial discretion, organizational structure,and organizational behavior. We conclude the study of managerial discretion and give suggestion on the future study.Secondly, on economic perspectives, this study explored the determinants of executive's compensation. This empirical Study on The Determinants of Executive Compensation of Chinese listed firms. The empirical study was conducted among samples of 4430 listed companies from 1999 to 2003 in China compiled from CSMAR database. A study attempts to identify determinants of executive compensation in China Results suggest that firm size, firm performance, and firm ownership characteristic all determine executive compensation in China, We explored the cause of these determinants and suggest some guidelines for Chinese listed companies'compensation policy and discuss the future research should be done.Thirdly,Why there is executives'compensation difference across industries? The role of managerial discretion in setting of executives'compensation .This empirical study was conducted among samples of 37 two digital SIC manufacture industries from 1999 to 2003 in China. A study tries to explain why there is difference among these industries. We think it's the role of managerial discretion defined as attitude of action. We classify 37 industries in to high discretion,middle discretion and low discretion three groups by cluster analysis. Results suggest that managerial discretion of executives is positively linked to executives'compensation and the pay difference across industries. Then, we do a regression analysis between the dimensions of...