Research On Political Correlation,Executive Compensation And Earnings Management

The party system is an important part of building the political theory of Chinese characteristics.Strengthening the study of the party system is of great significance to corporate governance and the promotion of social progress.This paper,from another unique perspective,distinguishes from previous researches on political connections,and considers whether the association form of party organizations participating in corporate governance in state-owned enterprises will have an impact on enterprises as a research starting point,and explores whether their participation will be given to enterprises.What kind of impact it brings.First of all,the reform and development of state-owned enterprises are closely related to China's economic security and the development of the socialist system with Chinese characteristics.Giving full play to the political core role of the party organizations in enterprises is not only the greatest advantage of state-owned enterprises,but also the establishment of a modern enterprise system with Chinese characteristics.Essential characteristics.At the same time,a series of laws and policies promulgated by China have given the party organizations the qualifications to participate in corporate governance.Secondly,considering the reality of "internal control" and imperfect governance mechanisms in China's state-owned enterprises,it is more necessary.Party organizations participate in corporate governance and play a central role in politics.Based on this,this paper starts from the perspective of the participation of party organizations in state-owned listed companies in corporate governance,and focuses on the transfer of external political relations to the grassroots party organizations within the enterprise,and analyzes how the participation of party organizations in state-owned enterprises will have an impact.In addition,we also need to pay attention to the fact that the salary issue of state-owned enterprise executives has been concerned by people from all walks of life since the reform and opening up.Therefore,the relationship between party organizations and executive compensation is considered,and the participation of party organizations within the enterprise is considered.It is necessary to have an impact on executive compensation,including the impact on executive compensation and compensation performance sensitivity.In addition,more studies have also confirmed that remuneration can easily induce executives' earnings management behavior.This paper focuses on the six years from 2011 to 2016,starting from the state-owned listed companies,based on the theory of corporate governance and party theory,based on existing research,using theoretical analysisand empirical analysis to study the participation of party organizations.The relationship between corporate governance and executive compensation,compensation performance sensitivity,and earnings management.Through empirical research,it is found that the participation of party organizations in corporate governance has a significant impact on executive compensation.There is a negative correlation between the two,that is,the higher the level of participation,the lower the level of executive compensation.At the same time,the participation of party organizations has also had a certain impact on the sensitivity of executive compensation performance,and further research found that companies with high participation in party organizations will weaken the incentives for executives to manage earnings from salary incentives.The research carried out in this paper is closely related to the unique theme of party organizations participating in corporate governance.It is a discussion of political connections and more detailed remuneration.Through this research,we can gain a deeper understanding of the forms of party organizations' participation and related The fulfillment of functions,so as to better play the role of party organizations in enterprises,has also expanded to a certain extent the relevant research in the field of political relations,compensation,and the theory of corporate governance with Chinese characteristics.