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Does economic policy uncertainty influence executive compensation stickiness? Firm-level evidence from China

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  • Jia, Qiaoyu
  • Zhou, Jia'nan

Abstract

This study conducts an empirical analysis of the effect of economic policy uncertainty on executive compensation stickiness and the underlying mechanism using data on A-share main board listed companies from 2007 to 2021. This study finds that economic policy uncertainty positively relates to executive compensation stickiness. Tolerance, information, and supervision effects are important mechanisms of this impact. Further studies show that the effect of economic policy uncertainty on executive compensation stickiness is also significantly affected by political uncertainty, industry competition, nature of property rights, executive career concerns, and management power.

Suggested Citation

  • Jia, Qiaoyu & Zhou, Jia'nan, 2024. "Does economic policy uncertainty influence executive compensation stickiness? Firm-level evidence from China," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 562-582.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:562-582
    DOI: 10.1016/j.eap.2024.07.006
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