The Research On The Influence Of The Managers’ Compensation Of Chinese Listed Companies To Corporate Risk

After the outbreak of the financial crisis in2008, some experts blamed the real reason forthe crisis on many international large and medium-sized managers excessive risk preferenceof listed companies, and they intended use aggressive way for oneself seek a higher interestreturn, which caused the accumulation of risk. At the same time, our country is in thetransition phase of the economic, political, social, cultural and ecological civilization.Thisarticle strengthens the research of the internal control of listed companies.This article selects the listed company managers’ compensation and risk as thebreakthrough point,and focus on studying the influence of the listed company managers’salary incentive for the risks of the company.Using the standard research and empiricalresearch method.Firstly,this paper in-depth reviews the managers’ compensation relatedclassical theory,and illustrates the scope of executive compensation and risk category in orderto make clear the research object of this paper.Combining with the principal-agent theory,thisarticle discusses the inner link of managers’ compensation and corporate risk,and discoveriesthe flaws of the listed companies pay.Then, statistical description analysis and panel dataregression analysis uses STATA and EVIEWS statistical software, the data of this articleoriginates from GTA database.Based on the results of the normative research, this articleselects variables, builds the model, and tests the influence of managers’ compensationcondition and corporate risk.The results showed that the risk of listed companies and the managers’ short-termcompensation have the positive correlation relationship;The listed companies risk and pay fora long time have the negative correlation relationship;The managers compensation of listedcompany has the positive correlation relationship with the share price volatility for a longtime;The listed company managers’ short-term salary scale has the positive correlationrelationship with the scale of company.Finally, according to the normative analysis results andthe empirical results, this article puts forward the corresponding countermeasures andsuggestions to reduce company risk.