Research On The Influence Of Private Equity Investment To Executive Compensation Of GEM Listed Company

With the continuous development of economic globalization and the constant improvement of China's capital market,private equity investment showing the huge development potentialities,not only can solve the financial difficulties of the GEM enterprises in China,but also can actively involve in the day-to-day operations and the management process of the enterprises.That can help to strengthen the incentive effect on the management,optimizing the corporate governance structure,and improve enterprise performance.PE not only can realize the purpose of acquire value-added capital,but also can improve the operating performance and market value of the enterprises,by connecting the executive compensation and corporate performance for manager's job enthusiasm.In this paper,the author study the the GEM executive compensation listed companies by adding the private equity investment variable,analyzes the influence to executive compensation with the support of private investors,furthermore study the influence of different characteristics with PE investors to executive compensation,such as he background of private investors,ownership,industry experience,joint investment,etc.On the basis of drawing lessons from the existing literature methods,the author builds the regression model and proves the related hypothesis with the empirical analysis method by using 425 GEM enterprises samples data from 2010 to 2015.And according to research results,the author put forward the corresponding suggestion about regulating private equity investment operation mode and improving the corporate governance.