Abstract
ABSTRACT From the perspective of non-financial performance, this study investigates the effect of corporate awards on executive compensation. We find that as a measure of non-financial performance, corporate awards help increase executive compensation by demonstrating the company’s status in the industry through the efforts of executives. In addition, corporate awards play an important role in supplementing the financial performance of a firm to improve executives’ pay-performance sensitivity. Our empirical evidence also reveals that corporate awards are included as a subjective indicator to evaluate the non-financial performance of state-owned enterprises (SOEs) in China: the increase in compensation and the stickiness of this compensation for financial performance based on corporate awards in SOEs are both stronger than in non-SOEs. Moreover, when managers cannot fully obtain other forms of incentives (such as perk consumption or equity incentives), the effect of corporate awards on managers’ monetary remuneration is more significant.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
