Empirical Research on Influence Factors of Executive Compensation in China’s Monopoly Industries
|Keywords||monopoly executive compensation listed company factors|
Executive pay system of listed companies is an important part of the corporate governance mechanism. The senior executive compensation system is to solve the principal-agent problem of corporate governance. China’s reform and opening up has gone through thirty years of history, the modern enterprise system has been largely established, but executives pay system in monopoly industry is still not up to standard. How to effectively restrict executive high salaries problem in monopoly industry has caused widespread concern in society.This article is based on monopoly theory, principal-agent theory, the theory of corporate governance, human capital theory and incentive theory, and related research at home and abroad, I will analyze the internal and external factors affecting executive compensation analysis. On this basis, I select the monopolies of our 2005-2007 data of China’s listed companies in monopoly industries and do the empirical research on factors affecting executive compensation. The results show that:there is a weak significant positive correlation between executive pay of monopoly companies and company performance; the size of the company is positively correlated with executive pay of monopoly companies; board size are positively correlated with it; asset-liability ratio is negatively correlated with it; the size of the board of supervisors, the proportion of independent directors, two part-time staff, the proportion of state-owned shares, whether issued B shares is not clear; ownership concentration is positively correlated, rather than negative correlated. The Cause that the proportion of state-owned shares and ownership concentration does not play its due role is the serious absence of monopoly owner and government supervision. To solve the above problem, this paper put forward to break the monopoly, strengthen competition, strengthen the government’s monopoly control and improve relevant laws and regulations and other policy recommendations.