Research On The Relationship Between Executive Compensation And Accounting Conservatism Of Automobile Listed Companies

Since executive compensation incentives were created in the 1980s,executive compensation in listed companies has grown rapidly,while a series of accounting frauds have emerged.After the outbreak of the financial crisis in 2008,the researchers found that the accounting information quality of listed companies was low,accounting conservatism was poor,and the social sectors questioned the incentive effect of executive compensation.How does executive compensation affect accounting conservatism as an incentive?In recent years,scholars at home and abroad have conducted theoretical analysis and empirical research on the relationship between executive compensation and accounting conservatism,but the results are not uniform.Automobile manufacturing industry is one of the pillar industries in our country,which is widely concerned.Its rapid development attracts a large number of investors,while accounting conservatism can handle information asymmetry well,which is crucial for investors' decision.To improve the level of accounting conservatism of listed companies,it is necessary to understand the relationship between them and executive compensation.Therefore,it is of great theoretical and practical significance to study the relationship between executive compensation and accounting conservatism of automobile listed companies.In this paper,three methods:normative research,logical reasoning and empirical research are used.First of all,in this paper about the relationship between executive compensation and accounting conservatism is sorting and review the research literature,on the basis of this,for defining the relevant concepts,and analyzes theoretical basis;Then,the paper analyzes the current situation of executive compensation and accounting conservatism of automobile listed companies and the influence mechanism between them,and puts forward three hypotheses in this paper.Finally,the empirical part of this article to January 1,2012 listed on the a-share listed companies 2012-2016 data as sample,on the basis of reference of the existing theories and models,the introduction of relevant variables in this paper,we study need build the model,using SPSS 19.0 software descriptive analysis,correlation analysis and regression analysis,hypothesis is validated by empirical research.Through empirical research,this paper mainly draws the following conclusions:1)the executive compensation of automobile listed companies is positively correlated with earnings management;(2)earnings management of automobile listed companies is negatively correlated with accounting conservatism;(3)executive compensation of automobile listed companies is negatively correlated with accounting conservatism.Finally,combining with the present situation and development of automobile listed companies,the author puts forward corresponding policy suggestions.