Can Enterprise Life Cycle Interpret the Sensitivity of CEO Compensation and Performance？

• Main Author: 徐鳳均
• Other Authors: 陳俞如博士
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/72319235681232290284

碩士 === 國立彰化師範大學 === 財務金融技術學系 === 103 === Compensation is the most important incentive system for enterprise to manage CEO’s performance . If companies couldn't provide compensation which can meet the expectations of the managers, it would cause some opposite effects that managers might make unfavorable decisions in shareholders' equity. Therefore, the enterprise have to consider the CEO’s compensation carefully.Companies should give different considerations to each policy in different stages of a life cycle. The objective of this paper is to investigate wheather the relationship between CEO compensation and performance sensitivity is different or not, samples taken from 2009 to 2012 between the Chinese mainland among 6725 observations .We use it to view the relationship between the enterprise life cycle and CEO’s pay-performance sensitivity. This article also availing Anthony and Ramesh (1992) method of capital expenditure ratio which is selected, revenue growth rate, dividend payout ratio, the company established to determine the number of years as a corporate life cycle and other factors. The empirical results we found that the degree of growth and maturity linked to the performance of the CEO compensation and related strong degree of maturity and more links than growing.