Research On Fair Value Measurement, Corporate Performance And Executive Compensation

The Ministry of Finance issued Accounting Standards for Business Enterprises No 39.----Fair Value Measurement in 2014,meaning that the fair value measurement has gone through the energetically advocation to policy of avoidance and now reintroduction.Fair value measurement affects the relevance and reliability of accounting information,meanwhile it changes the composition of financial statements,and then influnences the corporate porformance and may affect the executive compensation.In recent years,the study of executive compensation has been constantly,especially after the events of �sky-high price compensation' in the financial industries,and the national policy towarded to �porformance ralated pay'.The paper studies how and what the influnence of the fair value measurement on the executive compensation,it not only examines the economic consequences of the fair value measurement from the perspective of contract,but also provides the basis and suggestions for improving the executive compensation contract system.This paper reviews the economic consequences of fair value measurement,the influence factors of executive compensation,and analyzes every two relationships among the fair vlue measurement,corporate porformance and executive compensation,and states the principal agent theory and the wage stickness theory.According to the literature review and theoretical analysis,the paper suggests the hypothesis that the executive compensation is correlative and asymmetric with the fair value measurement in the non-financial listed companies,but suggests an uncorrelated or stroger hypothesis in the financial listed companies.Studying data select from CSMAR data base 2013-2015A-share listed companies,after the selection and the elimination of the sample,we choose 1823 non-financial listed companies sample and 135 fianncial listed companies sample.Reference to the predecessors' research,we establish the multiple regression model and mesomeric effect model,and apply the SPSS,EXCEL and other softwares making descriptive analysis correlation analysis and regression analysis.The empirical study found that there was a positive correlation between the executive compensation and the changes in fair value gains and losses in non-financial listed companies,and the effect is asymmetric;the changes in the fair value gains caused the syntropy changes of the executive compensation,but the changes in the fair value losses are not,in the test the corporate porfomance makes an completely mesomeric effect between two variables.In the analysis of the financial listed compenies sample,there is no significant correlation between executive compensation and changes in fair value,but in the classified samples,executive compensation has a positive correlation with the changes in the fair value gains,and there is no significant correlation with the changes in the fair value loss.