Executive Compensation,Social Responsibility and Value Creation——Empirical Evidence from China's Capital Market
The design of executive compensation system is an important governance mechanism to alleviate the principal-agent problem.Executive compensation and the fulfillment of social responsibility affect the value creation effect of enterprises.This paper selects A-share listed companies in Shanghai and Shenzhen from 2016 to 2020 as research objects,empirically explores the impact mechanism of executive com-pensation on value creation,and examines the mediating effect of social responsibil-ity.The research finds that the higher the executive compensation,the higher the value creation.Social responsibility has an intermediary effect between executive compensation and value creation,and can strengthen the positive impact of execu-tive compensation on value creation.On the basis of summarizing previous studies,this study combines executive compensation,social responsibility and value creation to enrich the theoretical research on value creation.At the same time,it provides a basis for enterprises to set reasonable executive team compensation and guide en-terprises to dynamically adjust executive compensation,and puts forward relevant suggestions,with a view to enlightening practice.Improve the management incen-tive mode,set up a reasonable salary system,establish a perfect salary incentive and restraint mechanism.Improve the performance appraisal system of senior execu-tives,pay attention to the efficiency of senior executives,and improve the internal supervision mechanism of enterprises.Take social responsibility as the standard of executive compensation assessment,improve corporate governance structure,and incorporate social responsibility fulfillment into corporate strategy.Disclose the in-formation of fulfilling social responsibility actively,transmit positive signals to all stakeholders,establish a good image of the enterprise,and increase the reputation capital of the enterprise.
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