Study The Correlation Of Executive Incentive Compensation And Corporate Value

Executive compensation incentive problem has been the focus of theoretical research, to establish the effective incentive mechanism is an important issue facing China's listed companies, a reasonable salary incentives to improve the corporate governance of listed companies, listed companies in China to promote the development of essential. In this paper, based on existing research on executive pay incentives, on the one hand from the executive's pay money, executives holding two research executive incentive compensation associated with enterprise value; on the other hand innovative in a different identity the nature of the executives into entrepreneurs, investors, agents, and a comparative analysis between the three, to further improve the study of executive compensation incentive, with some innovative.This collection of 396 companys in 2014'data by regression analysis examined executive compensation and enterprise value relevance, and the difference between entrepreneurs, investors and broker between executive pay and corporate value, the study found that high tube monetary remuneration and enterprise value was significantly positive correlation between executive ownership and value negative. But executives monetary remuneration, equity incentive and enterprise value relevance of different manifestations in different identities executives, agents monetary incentive pay of the enterprise value of the positive impact of stronger entrepreneurs and investors entrepreneurs executives proportion of ownership positive impact on the enterprise value is stronger than investors and agents. This shows that the different identities of executives differ in their corporate governance mechanisms and operational objectives, which pay incentives for executives are also different.Listed companies to further improve the business incentives, gradually increase the monetary incentive executive compensation, senior equity and improve the incentive to really play a role in establishing a multi-level and multi-faceted organization incentives. Establish and improve the professional manager market, adjusted remuneration incentive system, strengthen the incentive for the broker should pay money in order to increase corporate value for entrepreneurs and investors should be appropriately adjusted stake.