Advertisement

Research on the Correlation between Performance and Compensation of Executive and Staff in Agricultural Enterprises

  • Fayuan Wang
  • Danwei Lin
Part of the Communications in Computer and Information Science book series (CCIS, volume 208)

Abstract

In order to stimulate the activity of executive and staff in agricultural enterprises and improve management measures, we adopt semi-log weighted least square regression method to analyze the correlation between enterprise performance and compensation of executive and staff. Analysis results show that correlation between enterprise performance and the total and average compensation of senior executives, the highest executive’s pay and staffs’ average salaries is obvious. And the correlation rises quickly at first, then at a lower speed to a certain level, and even declines in the end. The increase of highest executive’s pay can maximally improve enterprise performance. And increasing the total executive compensation can also enhance enterprise performance to a certain extent.

Keywords

Agricultural enterprise compensation and performance correlation 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Lu, R.: Analysis of Managerial Power, Compensation and Performance Sensitivity (in Chinese). Contemporary Finance & Economics 7, 107–112 (2008)Google Scholar
  2. 2.
    Main, B.: Pay in the Boardroom Practices and Procedures. Personnel Review 22, 3–14 (1993)CrossRefGoogle Scholar
  3. 3.
    Bebchuk, L.A., Fried, J.M., Walker, D.I.: Managerial Power and Rent Extraction in the Design of Executive Compensation. University of Chicago Law Review 69, 751–846 (2002)CrossRefGoogle Scholar
  4. 4.
    Bertrand, M., Mullainathan, S.: Are CEOs Rewarded for Luck? The Ones without Principles are. The Quarterly Journal of Economics 116, 901–932 (2001)CrossRefzbMATHGoogle Scholar
  5. 5.
    Tang, J.: Study of Top Management Compensation and Performance in Listed Companies (in Chinese). Market Weekly. Disquisition Edition 12, 83 (2006)Google Scholar
  6. 6.
    Li, Z.: Incentive Mechanism and Enterprise Performance: an Empirical Study of Listed Companies (in Chinese). Accounting Research 1, 24–30 (2000)Google Scholar
  7. 7.
    Chen, X., Liu, S.: An Empirical Study on the Structural Difference among the Compensation of Managers in Chinese Public Companies (in Chinese). Economic Research Journal 8, 55–63 (2003)Google Scholar
  8. 8.
    Guo, X., Hu, Y.: Study of Correlation between Top Management Compensation and Performance based on Competition (in Chinese). Science & Technology Association Forum 3, 64 (2007)Google Scholar
  9. 9.
    Lu, R.: Managerial Power, Corporate Governance and Pay-Performance Sensitivity (in Chinese). Contemporary Finance & Economics 7, 112 (2008)Google Scholar
  10. 10.
    Zhu, Q., Peng, W.: The Study of the Correlation between Pay and Performance of Chinese Listed Companies. East China Economic Management 8, 116 (2008)Google Scholar
  11. 11.
    Li, Y.: Western Economics (in Chinese). Higher Education Press, Beijing (2000)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Fayuan Wang
    • 1
  • Danwei Lin
    • 2
  1. 1.College of EconomicsYangtze UniversityJingzhouChina
  2. 2.Hansan Normal UniversityChaozhouChina

Personalised recommendations