Study On The Impact Of Executive Perks From The Perspective Of Enterprise Life Cycle

With the rapid development of Chinese economy,the ownership and management rights of enterprise is in further separation.The purpose of the operators and owners also becomes not identical,the friction between them becoming more frequent.With the development of information technology,the various actions of executives are gradually exposed in the public.Executives' perks problems also become a hot topic among major network,the media and the press.With respect to monetary compensation,perks is more flexibility and hidden,which makes it urgently need to be studied.Exceeding executive perks which is because of manager's opportunistic behavior is not only bad to the performance of enterprises,but also damage the interests of investors,and hinder healthy and sustainable development of enterprises.Therefore,this article is based on free cash flow theory and the framework of principal-agent theory,trying to figure out the economic effect of executive perks and the effective ways to relieve exceeding executive perks.This paper is combination corporate life cycle with the economic effects of perks,studying the economic effects of perks at different stages of the life cycle and to make recommendations on the basis of empirical research in accordance with the relevant conclusions,in order to enhance business performance and promote healthy and sustainable development of enterprises.According to Dickinson' Cash flow combination method,This article divides sample companies into growth,maturation and recession group.Then build the models of perks economic effects of each stage of the life cycle,and the comparison models of perks' economic effect intensity of the life cycle phases.And select Chinese listed A shares 2011-2013 three years sample.Finally,use the selected samples to test the established multiple regression model,in order to analyze the perks'economic effects of each life cycle.The empirical results as follows:firstly,perks of growth phase stage is significantly positively correlated to corporate performance;secondly,perks of maturity phase stage is significantly negatively correlated to corporate performance;thirdly,perks of recession phase stage is significantly negatively correlated to corporate performance;fourthly,perks of all samples is significantly positively correlated to corporate performance;lastly,perks economic effects of each life cycle stage is significantly different from each other.According to the conclusions of this article,the suggestions we proposed as follows:firstly,the government should mandatory require companies to disclose the detailed data of perks;secondly,the during maturity and recession stage enterprises should carry out strengthen supervision over the work of independent directors;thirdly,the during maturity and recession stage enterprises should establish the budget system of perks to strictly control the perks;fourthly,Continue to deepen the reform of professional managers market.