Key subordinate executive-CEO pay gap and firms’ digital transformation: Evidence from China

DOI

10.2991/978-94-6463-459-4_26How to use a DOI?

Keywords

executive pay gap; digital transformation; agency costs; textual analysis

Abstract

The key subordinate executive-CEO pay gap is important for firm growth and business performance. The future growth of firms is what digital transformation is all about. With a sample of Chinese A-share listed companies from 2010-2021, we investigate the effect of the key subordinate executive-CEO pay gap on the firm’s digital transformation. The results show that the key subordinate executive-CEO pay gap promotes the firm’s digital transformation by reducing agency costs. This promoting effect is particularly noticeable in non-high-tech firms and non-duality firms. Compared with the digital technology application type of digital transformation, the key subordinate executive-CEO pay gap has a more visible incentive effect on the fundamental digital technology type of digital transformation in firms.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fangjie Dai
AU  - Jun Zhou
PY  - 2024
DA  - 2024/07/23
TI  - Key subordinate executive-CEO pay gap and firms’ digital transformation: Evidence from China
BT  - Proceedings of the 2024 9th International Conference on Social Sciences and Economic Development (ICSSED 2024)
PB  - Atlantis Press
SP  - 203
EP  - 213
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-459-4_26
DO  - 10.2991/978-94-6463-459-4_26
ID  - Dai2024
ER  -