Private Holding Executive Pay To Corporate Performance Of Listed Companies In China The Impact Study

Business is good or bad, sustainable business, executives play a very important role in it. The principal-agent theory, shareholders and managers do not match the target and the information asymmetry cause between agency costs. How to reduce agency cost and the managers want to shareholders in the direction of the business enterprise, become social hot topic discussed now. Incentive theory is that only compensation mechanism can solve this problem very well, so, how to effectively alleviate the principal-agent problems in corporate governance, improve the enthusiasm of managers achieve the expected salary incentive effect, is the topic of study in this paper.Based on the above background, this paper combines the empirical research both at home and abroad, is firstly analyzed from a theoretical level the relationship between executive compensation and corporate performance and ownership structure impact on compensation performance sensitivity; Second, from 2010 to 2014, 1450 private listed company data as the foundation, has analyzed our country private listed company executive compensation and firm performance and corporate governance status quo, in order to understand current situation of private listed company executive compensation incentive system and equity characteristics; Again, selected the 2010-2014, 1450 private listed companies as research samples, through statistical software, using the principal component analysis method, from the company’s debt paying ability, operation ability, profitability and growth ability has established a comprehensive index to measure the company’s performance, and had three logarithm of the total amount of executive pay as explanatory variables, through the regression analysis of empirical research on the private listed companies in China the correlation between executive compensation and firm performance, and then from the aspect of equity structure, its impact on executive compensation performance sensitivity; Finally, according to the result of empirical analysis is put forward Suggestions of perfecting our country’s private listed company executive compensation system.In this paper, the empirical study results show that the Chinese private listed companies of executive compensation and corporate performance was significantly positive correlation; The private listed companies in our country at present stage can significantly positively related to ownership concentration and compensation performance sensitivity; Private listed company’s equity balance degree will weaken the compensation performance sensitivity, both showed a negative correlation relationship; Height of separation of ownership and control as a feature of private listed company ownership structure affects the sensitivity between pay and performance, weakened the two relations, namely the separation of control and ownership is negatively related to the compensation performance sensitivity. Management ownership and positively related to the compensation performance sensitivity.