Grey relational analysis of executive compensation and firm performance in chinese port and shipping listed companies

Abstract

since the outbreak of the financial crisis in 2008, problems of excess capacity in China's shipping industry are extremely serious. It resulted in most listed shipping companies suffering heavy losses. However executive compensation in some enterprises is rose sharply. The paper studies whether the correlation degrees of firm performance, executive stock-holding, continuous growth capacity and other relevant factors of executive payment are effected by all financial crisis and tries to find the key factors in the executive compensation evaluation mechanism. According to statistical data from 2004 to 2013 in representative Chinese ports and listed shipping companies, the Grey system theory is applied to make a contrast analysis of correlation between compensation and other factors such as firm performance. Finally, suggestions that formulate a reasonable executive compensation evaluation mechanism were put forward for listed companies in the background of the new area.