Regulation Change, Job Consumption And Its Economic Consequence

Abnormal job consumption information of the listed companies is constantly popped in China in recent years, it caught the attention of the society from all walks of life, especially in state-owned enterprises, because of the existence of the internal control and compensation control, excessive executives job consumption is everywhere, with the improvement of the information disclosure, excessive executives job consumption behavior through the media, network and so on are known by people, so the public are aggrieved of executives job consumption of state-owned listed company to violate the interests of the company’s and state’s benefit, so the government has also introduced a series of policy intervention opportunism behaviors of the state-owned enterprise executives. December 2012, China issued "Eight provisions, six of the ban" to advocate improving the party working style, more detailed limits the job consumption, etc. Obviously this will greatly limit the excessive job consumption of state-owned enterprise executives, and will safeguard the interests of state-owned listed companies. As the central committee of the communist party of China issuing "eight provisions, six of the ban ", whether the state-owned enterprise executives job consumption is actually reduced, what is relationship between job consumption and company performance and how eight policy rules effect of the relationship between the two? The question deserves in depth discussion.In this paper, base on analyze about the domestic and international job consumption research we will use date of Shanghai and Shenzhen a-share listed company public data from 2011 to 2014 as research samples. First this paper examined whether the eight provisions policy could reduce executives excessive job consumption level of the state-owned listed companies, and then examine how the enterprise executives job consumption impact on corporate performance, and further examine the eight provisions whether affect the relationship of executive job consumption and the corporate performance. The study found that, the eight provisions policy significantly reduced the executives job consumption level of the state-owned listed company, to some extent, eight provisions policy also reduced executives job consumption level of the non-state-owned listed, all in all,eight provisions policy significantly reduced the job consumption level of the listed company; second, the state-owned listed companies job consumption is negatively related with firm performance, state-owned listed companies job consumption as a most of the agency costs will damage the company’s performance, but in the control group in non-state-owned listed companies the relationship between the performance and job consumption is not obvious; eight provisions significantly alleviate the job consumption’s influence on the firm performance, job consumption level of the state-owned listed companies dropped, relative to improve the performance level of the state-owned enterprises, while the control group of executives job consumption of non-state-owned listed companies reduce executive job enthusiasm and therefore executives of non-state-owned listed companies did not want to improve the company’s performance.