A Study of the Relationship among CEO''s Compensation,Ownership Structure, and Corporate Performance

• Main Authors: su wei, 蘇薇
• Other Authors: DR.CHUN-AN LEE
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/87955053979526402230

碩士 === 國立雲林科技大學 === 企業管理研究所 === 86 === This study examines the relationship of the compensation structure of the CEOs, ownership structure and firm''s performance, and examines the determining factors of CEO''s compensation. The question of evaluating a firm''s performance has been the most noticeable lesson in the management of a company. In this study I use Tobin''s Q ratio, return on assets (ROA), and return on equity (ROE) which are the traditional guidelines for evaluation, I also use the economic value-added (EVA) which is used by many fore The compensation structure of CEO includes the actual compensation, the cash-based compensation and the equity-based compensation, that cannot be acquired by the public data. I use questionnaires to collect information about compensation. Other information for the research is acquired by the public data. The sample used in the study are all firms which has listed before January 1, 1996, but exclude banking and insurers industry. The research was done in 1996 by cross-sectional analysis. I sent out 306 qu The conclusions after analyzing the statistics are: (1) The higher percentage of equity held by directors has higher ROA and higher ROE. (2) CEO''s compensation structure uses more equity-based compensation has higher EVA, higher ROA and higher ROE.(3) CEO''s compensation structure uses more cash-based compensation, which does not increase firm''s performance. (4) The higher the salary for the CEO exposed on the financial statements will have a significantly positive influence on EVA.(5) The percentage of equity held by directors has a negative influence on CEO''s compensation structure. There is a significantly negative influence on the fixed salary and the total compensation. (6) The longer a CEO holds a position, the higher growth a firm''s total assets and the equity-based compensation for the CEO will be higher. (7) The age and the educational qualification of a CEO will have a significantly positive influence on the fixed salary. (8) The greater firm size, the higher the salary for the CEO exposed on the financial statements will be.