Abstract

The fast development of internet generated the wave of E-Commerce, which can lead an expansion of IT industry. This paper focuses on the relationship between of managerial payment and firm performance in IT companies because of the significant distinguishing performance of companies and their managers in IT industry. With an empirical research through all 99 IT companies from Shanghai and Shenzhen stock market as the sample data, it is studied that the relationship between firm performance and managerial compensation and share in this papers, and meanwhile we analyze influencing factors of top-managers. The findings show that there is a significant positive relationship between the annual compensation of top-managers and firm performance in Chinese IT companies. But firm performance is independent of the shares allocated to top-managers and there is no interval effect.

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