Senior Management Compensation,equity Concentration And Corporate Performance

Will high salaries cause managers to become more diligent or corrupt?Since the establishment of the modern enterprise system marked by the separation of ownership and management rights,this has been a proposition that the market economy society cannot avoid.Mature companies inevitably entrust all or part of their operations to professional managers due to their own professional capabilities and development limitations.How to make agents and owners work together to achieve a win-win situation for individuals and companies has always been a passion for academics and the industry The topic of concern.Regardless of whether it is a state-owned enterprise system reform or a modern enterprise transitioned from a family business,there are also many disputes about the optimal structure of company equity.Is it because the majority shareholder’s "dictatorship" leads to personal will overtaking the company’s interests?Or does the dispersal of the equity of small and medium shareholders lead to the expansion of the power of professional managers and use the company as a channel for their own profit?With the rapid advancement of my country’s economic system reform,the types of enterprises have become diverse and different.and the equity and agency issues presented by enterprises of different natures are also different.Therefore,it is necessary and practical to comprehensively consider the impact of executive compensation and equity concentration on corporate performance and to explore the grouping of companies based on their nature.This paper selects the 2010-2019 annual report data of listed companies in my country and Shanghai and Shenzhen as the research sample for empirical analysis.After testing preliminary hypotheses,it is found that both executive compensation and equity concentration have a positive effect on company performance,and consider executives The combined effect of salary and equity concentration on corporate performance still draws a positive and significant conclusion.In order to ensure the reliability of the conclusions of the article,this article has carried out a robustness test by replacing the explained variables and introducing the square term,and the conclusions are still valid.On this basis,this article further talks about the company samples grouped according to their property rights(state-owned enterprises or non-state-owned enterprises),industry(monopoly or non-monopoly industry),and scale,respectively,to test the conclusions of the above conclusions in the above groupings.We found that the interaction term of executive compensation and equity concentration of state-owned enterprises has a greater effect on the performance of companies than non-state-owned enterprises;in monopoly industries,the interaction term of executive compensation and equity concentration promotes corporate performance.The effect is greater;the promotion effect of small-scale enterprises is higher than that of large-scale enterprise groups,but the difference betw een the two is smaller.