Empirical Analysis about Senior Executives’ Salary Incentives’ Impact on the Company Performance in Listed Companies
|School||Harbin Institute of Technology|
|Keywords||Senior executives Annual salary system Equities incentive Company performance|
In order to enhance the company performance, many scholars use senior executives’salary incentive to boost it and prove it theoretically and practically. However, scholars both at home and abroad draw many different conclusions about how salary incentive affects corporate performance, including positive effect, negative impact and no relationship. Therefore, in order to improve the company performance, offering references for designing senior executives’salary incentive scheme in chinese listed companies, this paper also tries to put forward its own views by empirical analysis.First, this paper defines and analyses the senior executives, executives salary stimulation, incentive mode and measurement of the company performance, uses annual salary system and equity incentives to estimate the senior incentives’salary incentive, and makes use of financial index method to measure the company performance. Then select conditionally a-share data of chinese listed companies from the year of 2008 to 2010 as research samples, use senior executives’s per capita annual salary, the number of shareholding and proportion of shareholding as independent variables, make use of the comprehensive enterprise performance score made by factor analysis of nine indexes in five aspects, including profitability, shareholders profitability, assets operation ability, growth ability and solvency,as dependent variable, complementary with whether state holding, whether exists core personnel as the control variables. Finally, dispose these data by descriptive statistical analysis and multiple regression analysis.The results show that company ferformance and the senior executives per capita annual salary increases year by year, the gap between companies grows gradually and the phenomenon of zero stock holding very common. Executives average salary has has positive influence on corporate performance. The number of shareholding and proportion of shareholding has negative impact on company performance. And non-state-owned holding company and corporate existing core personnel get better company performance, pay higher salary incentives and have more significant impact on company perfermonce.