Institutional Investor Network, Executive Compensation and Governance Effect

Taking A-share listed companies in China during 2012-2014 as research objects, empirical results show that: with the increase of network centrality, governance institutions contribute to the executive cash compensation incentive, suppress the pay performance sensitivity to a certain extent, and increase the possibility of the implementation of equity incentive plan. Further examination of the characteristics of property right shows that: there is difference between the executive power and the institutional ownership, and the corporate tends to adopt the financial policy of low risk and high cash dividend.