| Since the beginning of the 21st century,China’s economy is growing rapidly.Now China has generally achieved the basic goal of building a moderately prosperous society in different respects.With the development of economy and the continuous improvement of people’s living quality,insurance plays an increasingly obvious role in the social security system as a social stabilizer,which is not only the opportunity but challenge for the insurance industry.Therefore,it is critical to change their development mode to the high-quality long-term development mode.Insurance industry is a typical human capital intensive industry.The rationalization of human cost and salary structure is an important part of human resource management.A reasonable performance appraisal system and incentive and restraint mechanism are of great significance to improve employee enthusiasm and work efficiency.It is particularly important to study the relationship between the insurance company’s human cost,compensation structure and corporate performance.Firstly,this paper summarizes relevant literature’s at home and abroad.On this basis,this paper puts forward the research hypothesis.Then,we analyze the current situation of China’s major listed insurance companies in the following aspects:labor cost,salary structure and corporate performance.To test our hypothesis,7 listed companies in the insurance industry of China Stock Exchange during 2007-2019 are selected as research sample of this paper.Particularly,we use ROA to represent corporate performance,the ratio of equity compensation to represent salary structure and the employee compensation payable to represent the human cost,respectively.The empirical results are as follows:(1)there is a positively significant correlation between salary structure and corporate performance;(2)There is a U-shaped relationship between labor cost and enterprise performance;(3)Labor cost plays a moderating role in the relationship between equity compensation and corporate performance.On this basis,to strengthen the reliability of the research,the robustness test is carried out by substituting the explained variable as ROE.Finally,the paper summarizes the research,and puts forward several effective suggestions from two aspects on reasonably controlling labor costs and optimizing salary structure to improve the business performance of insurance companies. |
