Executive Compensation Incentive?Corporate Governance And Benefit Delivery

BACKGROUNDIn our country,the equity of listed companies "a dominant" structure features,major shareholders centralization is contributing to the company's operating decision-making efficiency,but also easy to cause the indemnification behavior,which determines the second "agency" problem,namely the listed company conflict of interest between large shareholders and minority shareholders becomes the primary governance issues.In recent years,the phenomenon of large shareholders transfer to happen from time to tome,For example,KELON electrical and XIAN industry,big shareholders transfer methods emerge endlessly,such as related party transactions,capital occupation,associated guarantees,etc.According to relevant statistics,as of 2016,the amount of shareholder capital of listed companies is up to 2.5 billion.The interests of minority shareholders and other stakeholders will not only harm the interests of the shareholders and other stakeholders,but also disrupt the normal capital market order and hinder economic development.How to restrain shareholder behavior and reduce the benefit deliver y has become a top priority.In 2015,? Memorandum of Cooperation on Joint Punishment of Relevant Responsibility Principals of Listed Companies with Unfair Illegal Entrusted Publications ?was issued by more than 20 ministries and commissions including the China Securities Regulatory Commission,the National Development and Reform Commission,the Central Bank and the Ministry of Finance,made an active exploration from the external oversight mechanism.However,the benefit delivery is caused by a series of defects with corporate governance,and exploring the root causes can solve the problem once and for all.Based on the internal governance mechanism of the company,this paper studies the benefit delivery from the aspects of management,ownership structure and the governance of the board of directors.The comprehensive utility of the single governance mechanism of the company also affects the benefit delivery.What is the governance utility of a single governance mechanism? How Interaction of multiple governance mechanisms affect the delivery of benefits? These are the research topics of this article.PURPOSETherefore,this dissertation focuses on the influence of executive compensation incentive and corporate governance structure on the benefit delivery,and focuses on the interaction between executive compensation incentive and corporate governance structure on the benefit delivery.It is hoped that the research will be conducted from the perspective of corporate governance effectiveness.The influence of internal governance on the benefit delivery provides data support for mitigating the benefit delivery and setting up a sound internal governance mechanism.Based on this,it provides some useful measures to optimize the internal governance of the company and improves the scientific nature of daily internal decisions.MAIN CONTENT AND VIEWAccording to the research topic of this article,this article mainly includes the following five aspects:Chapter one is introduction.Firstly,the section 1 states the topic background and research significance.Then the section 2 and the section 3 gives a brief description of main content and research method.Finally section 4 sums up the main contribution and shortcomings of the article.This part explains the logical thinking of this paper.Chapter two is literature review.Firstly,the section 1 defines the definition of key factors.Then the section 2 comments on domestic literature of executive compensation incentive and benefit delivery in the view of the whole study.Finally the section 3 comments on domestic literature of corporate governance structure and benefit delivery.This part clarifies the key direction of this paper.Chapter three is theoretical analysis.Firstly the section 1 reviews the basic theory,including information asymmetry theory,credit rationing theory,social capital theory and signaling theory.Then the section 2 analyzes the mechanism of executive compensation incentives on the benefit delivery,Then the section 3 analyzes the mechanism of corporate governance on the benefit delivery,Then the section 4 analyzes the mechanism of executive compensation incentives and corporate governance on the benefit delivery,which laid the theoretical foundation for the next discuss.Chapter four is the study design,Firstly based on the above theoretical analysis and the existing literature,the section 1 puts forward three sets of research hypotheses.Then the next sections explain sample selection,variables meaning and the model building section building an empirical research design framework for this article..The data screening from the 2010 to 2016 comes from the listed private enterprises on Shenzhen and Shanghai stock exchange which finally contains 14351 valid samples.Chapter five is empirical research.This section use descriptive statistic,correlation analysis,multiple regression analysis and robust regression analysis to test the hypothesis.Chapter six is the research conclusions and recommendations for private enterprises and regulators.Finally this part points out the future research directions.Through theoretical analysis and empirical test,the main conclusions of this paper are as follows: Executive compensation incentive has a restraining effect on the benefit delivery,which has different incentive effects in different situations.Although the independent director system can restrain the benefit delivery,this effect is not statistically significant.At the same time,the combination mechanism of executive incentives and independent directors does not play a binding role in the benefit delivery.The governance structure of the board of directors can effectively curb the benefit delivery,and the combination mechanism of incentive mechanism and separation of the two posts can also restrain the benefit delivery.Equity balances have the restraining effect on the benefit delivery,and the combination mechanism of the executive incentive and equity balances has an impact on the benefit delivery and there is a substitution effect between the two factor.CONTRIBUTIONSThe research innovation and contributions of this paper are mainly reflected in the following aspects:(1)This article has strong applicability.This paper studies the governance function of the internal governance mechanism on the benefit delivery,Which analyzes the source of the benefits transfer,and provides empirical evidence and policy suggestions for the regulators and policy makers to govern the benefit delivery.(2)Innovative research perspective.On the basis of verifying the active role of executive incentive mechanism in restraining the benefit delivery,this paper further explores the governance role of executive compensation incentive under the different executive sources and nature of property,Policy makers make reasonable incentives to provide targeted reference data.(3)Verification of interaction.This article will consider the two aspects of executive compensation incentive and corporate governance structure,study the impact of their interaction on the benefit delivery.Which provide a reference for the regulators and policymakers to further standardize corporate governance.