Impact Of Executive Compensation And M&A On Performance

M&A (Merger&Acquision) is the important strategic choice to expandbusiness scale and pursue enterprise value maximization, but because of China’sspecial institutional background, foreign mature acquisition theories and researchfindings are not entirely applicable to the actual situation in China.M&A market is an important part of the capital market, getting more andmore attention from scholars and experts. By studying the theoretical results on theperformance of mergers and acquisitions at home and abroad, it can be found thatoperating performance is not ideal in many companies after the M&A, even thevalue of corporate is destructed and the equity of shareholders get loss. Nevertheless,corporate executives are still keen to take the M&A activity. So the intrinsicmotivation of executives in the decisions of M&A is very worthy of study.Domestic M&A performance study mainly focuses the fields of the the payment ofM&A, the correlation of the industry and the development stage enterprises，ignoring the research on the motivation of executives with decision-makingauthority in the enterprise,and researching on the intrinsic motivation of executives，executive pay are the best starting points.The real estate industry is a pillar industry of the national economy in ourcountry, and whether it can develope healthily has become a major problem affectingthe national economy and people’s livelihood. Based on the research of the realestate industry M&A activity, hoping to draw a targeted and practical researchresults and have certain guiding significance for the development of the real estateindustry.Theoretical method and empirical research method are combined in this paper.This article divides executive pay into two parts, one is the dominant remuneration(monetary remuneration and shareholdings salary) and the other is recessive salary(job consumption). Taking the reference of the existed relevant research results athome and abroad, it selects the real estate date of Shanghai and Shenzhen A-sharelisted companies in2009as sample data，then it uses spss18.0software to proceeddescriptive analysis,correlation analysis and regression analysis and to study therelationship between the different parts of executive pay, the behavior of executiveM&A and the performance of M&A. The study found: the dominant executive payand M&A performance have significantly positive correlation in the real estate market. M&A activity and M&A performance is very low degree of correlation.