The Impact Of Macro Economy And Executive Compensation On The Performance Of Power Company

Electricity as a driving force for the development of macro-economy, it is very sensitive to changes in economic growth. To make a study on the relationship between them, scholars use with different interval annual data of different countries, and the conclusions are not the same. However, these studies are concentrated at the industry Level, this paper on the basis of previous research to refine the power industry to Corporation Level, study the relation between the power company performance and economic growth, economic policy.First of al, the power company performance is divided into accounting performance and stock market performance, which were used to be measured by the return on total assets and the stock average rate of return. Secondly, in the study of the relation between the power company performance and economic growth, we use the return on total assets and the stock average rate of return as different explained variables, select the real GDP growth rate, tax revenue growth rate, the money supply growth rate as the explanatory variable; in the research on the relationship between the power company performance and executive compensation, also use the return on total assets and the stock average rate of return as different explained variables, selected as the logarithm of the top three executives total compensation as explanatory variables. Then, in terms of data collection, this paper selected 36 A shared power companys listed in Shanghai and Shenzhen before 2000 as research object, selected the variable data during 2001~2013 as samples, using the Windsorization to trim the 1% and 99% end of sample data. Finally, found the real GDP growth rate, the p_value of ADF statistics on the coal price growth rate, the logarithm of the top three executives total compensation company executives and the total assets turnover is larger, and need to be first differenced.The empirical study found that power companies’ return on total assets and the first differenced real GDP growth rate are significant positive correlated, and does not have significant correlation with the tax revenue growth rate, but has significant positive correlation with the money supply growth rate. However, the power company stock average rate of returns have significant positive correlation with the first differenced real GDP growth rate, the tax revenue growth rate and the money supply growth rate. The study also found that both the power companies’ return on total asset and the stock average rate of returns has significant positive correlation with the logarithm of the top three executives total compensation.