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Executive equity incentives and corporate digital transformation

Author

Listed:
  • Wang, Qun
  • Zhao, Xiangfang
  • Zeng, Yongliang
  • Weng, Jiamin

Abstract

Based on a sample of Chinese A-share listed companies from 2005 to 2021, we explore the impact of executive equity incentives on corporate digital transformation. We find that executive equity incentives promote corporate digital transformation, and this effect is more salient for equity incentives granted in the form of stock options than restricted stocks, with a longer exercise period, and more lenient exercise performance conditions. Our findings enrich the research on the economic consequences of executive equity incentives and provide insights for promoting corporate digital transformation.

Suggested Citation

  • Wang, Qun & Zhao, Xiangfang & Zeng, Yongliang & Weng, Jiamin, 2024. "Executive equity incentives and corporate digital transformation," Economics Letters, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:ecolet:v:241:y:2024:i:c:s0165176524002775
    DOI: 10.1016/j.econlet.2024.111793
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    More about this item

    Keywords

    Executive equity incentives; Digital transformation; Stock options; Exercise period; Exercise performance conditions;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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