Empirical Research On The Influence Of The Private Placements Of The Executive Compensation

On the basis of summing up the research literature and selecting 2006--2015 data of Chinese SEO companies in China's A-share market.this paper makes an empirical analysis in two steps to explore the relationship between executive compensation and private placement.The empirical results show that for state-owned enterprises,the most crucial factor that affects executive compensation is the power of the executives.State-owned enterprise executives prefer private placement based on controlling shareholders tunneling to obtain more non-monetary compensation for evading regulation.In addition,the executive compensation of state-owned enterprises in our country is still low performance-related.For the private-owned enterprises,the most important factor influencing the remuneration of senior management is performance.Active investors will strengthen the supervision of the executives of private listed companies to further improve the performance of the company,which in turn will increase the executives compensation.However,as the target of private placement,the executives may take private placement as the way to seek personal gain for themselvesThe innovation of this paper is conducting an empirical study on the executive compensation and private placement to explore the impact of private placement on executive pay,which intents to provide new ideas for strengthening corporate governance.