Examining the Relationship between Capital Structure and Executive Compensation for Listed Real Estate Companies in China

This paper focuses on the relationship between capital structure and executive compensation, based on capital structure theories and the principal-agent theory, and using data from fifty real estate companies listed in the Chinese Stock during the period of 2010–2012. Our results show a significantly positive relationship between executive compensation and capital structure. The control variables of company size, profitability, and growth opportunities were also found to have a positive relationship with executive compensation.