Title :
Research on CEO compensation stickiness of Chinese listed companies—Empirical evidence from the different situations of profits and losses
Author :
Peng Yu-lian ; Liu Fei-yan ; Chen Xiu-de ; Xu Jiang
Author_Institution :
Sch. of Manage., Guangzhou Coll. of South China Univ. of Technol., Guangzhou, China
Abstract :
This paper studies the stickiness of CEO compensation by verifying the existence of asymmetric relations between CEO compensation and corporate performance in Chinese listed companies during 2005 to 2012, the results show that the marginal increase of CEO compensation in the case of corporate earnings to be significantly greater than the marginal reduction in the case of corporate deficit, which is tantamount to say that the stickiness of CEO compensation exists. Further research finds that the stickiness of CEO compensation in Chinese listed companies has not yet demonstrated significant time-varying trends; but there is sign of increased. We also find that the stickiness of CEO compensation can be suppressed by improving of regional marketization, shareholding system reform and diversified equity of state-owned companies, supervision of government, media and general public, and matrix control strategy.
Keywords :
corporate modelling; personnel; CEO compensation stickiness; Chinese listed companies; corporate earnings; corporate performance; diversified equity; government supervision; matrix control strategy; profit-loss situations; regional marketization; shareholding system reform; state-owned companies; time-varying trends; Analytical models; Companies; Educational institutions; Market research; Remuneration; Sensitivity; CEO compensation; compensation stickiness; performance; sensitivity;
Conference_Titel :
Management Science & Engineering (ICMSE), 2014 International Conference on
Conference_Location :
Helsinki
Print_ISBN :
978-1-4799-5375-2
DOI :
10.1109/ICMSE.2014.6930270
