Executive compensation controls and corporate cash holdings

doi:10.1371/journal.pone.0285387

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	Executive compensation controls and corporate cash holdings
	Wang, Peiqiong; Zhang, Xianhua; Wang, Taozhi; Wan, Zilu
	2023-09-08
发表期刊	PLOS ONE
卷号	18 期号:9
摘要	As a crucial component of internal corporate governance, remuneration controls possess the potential to influence the cash holdings of firms. However, identifying the causal relationship between these controls and such holdings presents a considerable challenge. To address this research gap, this paper leverages the implementation of China's Guidance on Further Regulating the Remuneration Management of Heads of Central Enterprises as a quasi-natural experiment to investigate the relationship between executive remuneration controls and firms' cash holdings, utilizing a double-difference approach. Based on an analysis of a sample of listed companies from 2007-2012, the results indicate that firms subject to regulated executive compensation exhibit lower cash holdings. To ensure the robustness of these findings, various statistical techniques such as parallel trend tests, variable replacement, propensity score matching, and placebo tests were employed. Additionally, a mechanism test was conducted, whereby the mediating effect of executive compensation controls on firms' cash holdings was examined, revealing a reduction in internal agency costs. Finally, the analysis of heterogeneity demonstrated that the impact of executive compensation controls on firms' cash holdings was more pronounced in companies with high-quality internal controls, stronger management oversight, and lower information asymmetry.
DOI	10.1371/journal.pone.0285387
收录类别	SCIE
ISSN	1932-6203
语种	英语
WOS研究方向	Science & Technology - Other Topics
WOS类目	Multidisciplinary Sciences
WOS记录号	WOS:001091871500014
出版者	PUBLIC LIBRARY SCIENCE
原始文献类型	Article
引用统计	被引频次[WOS]：0 [WOS记录] [WOS相关记录]
文献类型	期刊论文
条目标识符	http://ir.lzufe.edu.cn/handle/39EH0E1M/35477
专题	会计学院
通讯作者	Zhang, Xianhua
作者单位	Lanzhou Univ Finance & Econ, Sch Accounting, Lanzhou, Gansu, Peoples R China
第一作者单位	兰州财经大学
通讯作者单位	兰州财经大学
推荐引用方式 GB/T 7714	Wang, Peiqiong,Zhang, Xianhua,Wang, Taozhi,et al. Executive compensation controls and corporate cash holdings[J]. PLOS ONE,2023,18(9).
APA	Wang, Peiqiong,Zhang, Xianhua,Wang, Taozhi,&Wan, Zilu.(2023).Executive compensation controls and corporate cash holdings.PLOS ONE,18(9).
MLA	Wang, Peiqiong,et al."Executive compensation controls and corporate cash holdings".PLOS ONE 18.9(2023).