Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China
Corporate executives have the decision-making power of resource allocation, and efficient resource allocation is an important measure of high-quality development of enterprises. It is a focal issue whether the compensation incentive can promote the executives to make better use of the enterprise res...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/7073878 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832560667923578880 |
|---|---|
| author | Xianan Yin Hua Ming Jing Cui Xinzhong Bao |
| author_facet | Xianan Yin Hua Ming Jing Cui Xinzhong Bao |
| author_sort | Xianan Yin |
| collection | DOAJ |
| description | Corporate executives have the decision-making power of resource allocation, and efficient resource allocation is an important measure of high-quality development of enterprises. It is a focal issue whether the compensation incentive can promote the executives to make better use of the enterprise resource allocation. We investigate this question using the data of the Chinese listed companies in 2015–2019 based on Data Envelopment Analysis (DEA) and fixed effect model. The results show the following: (1) both monetary compensation incentive and equity incentive can significantly improve the efficiency of resource allocation, and the former is more significant; (2) there is an inverted U-shaped relationship between perquisite consumption incentive and resource allocation efficiency; (3) the above conclusion is still true in state-owned enterprises; (4) in private enterprises, the effect of equity incentive is more effective, but the effect of perquisite consumption incentive is less significant. The results highlight the relationship between compensation incentive and enterprise resource allocation. Our study is expected to guide the executives to formulate reasonable compensation incentives and improve the efficiency of resource allocation. |
| format | Article |
| id | doaj-art-5c99ee070ac44cb8ab0dcf9931230e70 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-5c99ee070ac44cb8ab0dcf9931230e702025-02-03T01:27:02ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/70738787073878Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from ChinaXianan Yin0Hua Ming1Jing Cui2Xinzhong Bao3School of Management, Beijing Union University, Beijing 100101, ChinaSchool of Management, Beijing Union University, Beijing 100101, ChinaSchool of Management, Beijing Union University, Beijing 100101, ChinaSchool of Management, Beijing Union University, Beijing 100101, ChinaCorporate executives have the decision-making power of resource allocation, and efficient resource allocation is an important measure of high-quality development of enterprises. It is a focal issue whether the compensation incentive can promote the executives to make better use of the enterprise resource allocation. We investigate this question using the data of the Chinese listed companies in 2015–2019 based on Data Envelopment Analysis (DEA) and fixed effect model. The results show the following: (1) both monetary compensation incentive and equity incentive can significantly improve the efficiency of resource allocation, and the former is more significant; (2) there is an inverted U-shaped relationship between perquisite consumption incentive and resource allocation efficiency; (3) the above conclusion is still true in state-owned enterprises; (4) in private enterprises, the effect of equity incentive is more effective, but the effect of perquisite consumption incentive is less significant. The results highlight the relationship between compensation incentive and enterprise resource allocation. Our study is expected to guide the executives to formulate reasonable compensation incentives and improve the efficiency of resource allocation.http://dx.doi.org/10.1155/2021/7073878 |
| spellingShingle | Xianan Yin Hua Ming Jing Cui Xinzhong Bao Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China Discrete Dynamics in Nature and Society |
| title | Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China |
| title_full | Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China |
| title_fullStr | Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China |
| title_full_unstemmed | Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China |
| title_short | Could Executive Compensation Incentive Enhance the Efficiency of Enterprise Resource Allocation? An Empirical Study from China |
| title_sort | could executive compensation incentive enhance the efficiency of enterprise resource allocation an empirical study from china |
| url | http://dx.doi.org/10.1155/2021/7073878 |
| work_keys_str_mv | AT xiananyin couldexecutivecompensationincentiveenhancetheefficiencyofenterpriseresourceallocationanempiricalstudyfromchina AT huaming couldexecutivecompensationincentiveenhancetheefficiencyofenterpriseresourceallocationanempiricalstudyfromchina AT jingcui couldexecutivecompensationincentiveenhancetheefficiencyofenterpriseresourceallocationanempiricalstudyfromchina AT xinzhongbao couldexecutivecompensationincentiveenhancetheefficiencyofenterpriseresourceallocationanempiricalstudyfromchina |