A Study on the Correlation between Job Consumption and Performance of Chinese Companies

Abstract

Purpose - The purpose of this paper is to explore the relationship between corporate governance structure, job consumption, and firm performance in listed companies in China using a sample of listed companies in Shanghai and Shenzhen from 2014 to 2018. Design/Methodology/Approach - Based on empirical analysis, the paper studies the moderating role of the nature of a company on the relationship between job consumption and firm performance, which finds that in-service consumption has a negative correlation with performance, and it has a greater impact on performance in state-owned corporations. Therefore, we put forward three suggestions, Improving the mechanism of supervision and impose additional restrictions on job consumption, Improving the management salary system and establish a reasonable budget and Improving the management equity incentive mechanism. Findings - The paper finds that job consumption has a certain inhibitory effect on enterprise performance, and job consumption have a greater impact on firm performance in state-owned enterprises. Research Implications - The paper offers a theoretical and empirical framework for further formulating and promoting relevant policies on disclosure, compensation, and incentives for job consumption, which will also provide reference for other scholars’ follow-up research.