Xu, Yong, Ji, Junzhe, Li, Nicolas and Borah, Dhruba ORCID: 0000-0001-8125-2549
(2024)
How do executive excess compensation affect enterprise technological innovation: Evidence from a panel threshold model of Chinese biopharmaceutical companies.
Journal of Business Research, 179.
p. 114683.
Abstract
This study examines the levels of executive excess compensation (EEC) that stimulate the quality and efficiency of enterprise technology innovation (ETI). Using a behavioral agency perspective, we investigate how companies achieve superior ETI by providing sufficient incentives to motivate executives to perform to the best of their abilities. We use a panel threshold model based on a sample of Chinese-listed biopharmaceutical companies and find that: (1) providing an EEC between 0.0592 and 0.1907 significantly affects the promotion of ETI quality; (2) regarding ETI efficiency, executives generally do not receive the compensation that they deserve; and (3) the existing EEC has a weak negative impact on ETI efficiency, gradually disappearing as compensation increases. Heterogeneity analysis reveals that restricting EEC to the eastern area and strengthening the supervision of EEC in state-owned enterprises are effective measures for stimulating ETI. We advance the literature by providing guidance on compensation plans to companies in different regions.
Item Type: | Article |
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Divisions: | Faculty of Humanities and Social Sciences > School of Management |
Depositing User: | Symplectic Admin |
Date Deposited: | 30 Apr 2024 07:23 |
Last Modified: | 07 May 2024 09:52 |
DOI: | 10.1016/j.jbusres.2024.114683 |
Open Access URL: | https://www.sciencedirect.com/science/article/pii/... |
Related URLs: | |
URI: | https://livrepository.liverpool.ac.uk/id/eprint/3180638 |