Research on Relationship between Private Benefits of Control and Top Executive Compensation in Double Agent Theory——An Empirical Study of Equity Transfer in China's Listed Companies

摘要

This paper studied the relationship between PBC and top executive compensation by simultaneous equation. Findings show according to 2SLS estimation that a coefficient between PBC and top executive compensation is 9.461 in PBC equation,and that a coefficient between expropriation and top executive compensation is 0.012 in top executive compensation equation. The results indicate that the impact of the top executive compensation to the PBC is greater than that of the expropriation interests of controlling shareholders to the top executive compensation.