The Executive Compensation And Ownershipstructure On The Technical Efficiency

It is that the increase of factor input and the improvement of technical efficiency the listedcompanies grow relying on. Yet be limited to environmental and social resource, the growth byincreasing the inputs cannot be long-term. Technical efficiency reflects the ability of enterprise inthe use of resources ability. This concept of technical efficiency fully consider the performanceevaluation of listed companies, the company size, the profitability and sustainable developmentability. In China, some scholars have used technical efficiency to measure the performance oflisted companies. And the listed companies in China are found technical efficiency in a low levelgenerally. At the same time, the scholars in the view of the ownership structure and government toexplore the reason that technology efficiency is in a low level. However, no consensus on whichfactors influence the technical efficiency or how to influence it. It is still controversial. On theother hand, in the traditional corporate governance researches, it is controversial that how theexecutive compensation and ownership structure of listed companies influence the performance oflist companies. In recent years, some papers consider the difference in a new view of endogenousvariable.This paper draws on the traditional corporate governance research method, in an endogenousangle, analyses the different influence of the same corporate governance factors on the technicalefficiency. By using different stochastic frontier model, and comparing the estimation results, tofind the endogenous variables in corporate governance factors of ownership concentration level,capital debt rate and executive compensation,this paper gets a reliable conclusion. Thenaccording to grouping these list companies by the size of the total assets this paper analyzes thedifference how the same variables on firms of different size. the result of the analysis shows thelarger list companies have higher technical efficiency. In the time that corporate governancefactors are improved, it is more obviously that the technical efficiency of larger companiesincrease.