摘要
CEO compensation stickiness represents an important indicator to measure the effectiveness of compensation contracts.This study uses CEO career experience data and compensation stickiness data from Shanghai and Shenzhen A-share listed companies from 2015 to 2020 to investigate the compensation contracts’effectiveness of CEOs with diverse career experiences.The findings are as follows:1)Compensation stickiness is more pronounced for CEOs with diverse career experiences.According to the mechanism test,these CEOs with diverse career experiences can obtain compensation incentives by reducing corporate uncertainty perception and improving total factor productivity.This approach leads to increased compensation stickiness and the effectiveness of compensation contracts.CEOs with diverse career experiences may receive excess compensation by raising agency costs,which intensifies compensation stickiness and weakens the effectiveness of compensation contracts.2)Compensation stickiness of CEOs with diverse career experiences is more significant in companies with lower investor protection,which brings about less effective compensation contracts.In contrast,in companies with higher diversification,the compensation stickiness of CEOs with diverse career experiences is more significant,which delivers more effective compensation contracts.The conclusions deepen the research of CEO compensation contracts and provide a helpful reference for CEO compensation management practices.
基金
the National Social Science Fund of China,under grant No.21BGL017.
作者简介
Shimin Sun is a professor in the School of Business Administration at Northeastern University,China.She received her Ph.D from Northeastern University in 2006.Her research interests include management accounting and financial management.Her work has been published in Chinese journals such as Accounting Research,Business Review,etc.smsun@mail.neu.edu.cn;Yongheng Wang is a doctoral candidate in the School of Business Administration at Northeastern University,China.He received his Master’s degree in business administration(2021)at Northeastern University,China.His research interests include corporate governance and manager incentives.1316122776@qq.com;Yawen Wang is a doctoral candidate in the School of Business Administration at Northeastern University,China.She received her Bachelor’s degree in accounting(2019)at Northeastern University,China.Her research interests include corporate governance and capital market.wyw_2019@163.com;Mengyu Mao is a doctoral candidate in the School of Business Administration at Northeastern University,China.He received his Master’s degree in business administration(2021)at Northeastern University,China.His research interests include self-leadership and proactive behaviors.His work has been published in Journal of Business Research,mmyneu@163.com。
