Empirical Study on Diversification Strategy, CEO Compensation Gap Design and Company Performance

摘要：

The study explores the moderating effects of CEO compensation gap on the relationship between diversification strategy and corporate performance from top management team coordination perspective. Furthermore,the author puts forward two competing hypotheses based on behavior theory and tournament theory. 797 Sample companies are listed companies selected from Shanghai and Shenzhen Stock Exchanges. Empirical results show that damage of corporate diversification strategy to corporate performance may be due to the existence of moral hazard during strategy implementation by senior executives. Thus enlarging CEO compensation gap can effectively align interests between managers and shareholders, indicating that tournament theory dominate solving the coordination problems of top management team in the context of Chinas institutional backgrounds,and the theory can play a greater strategic support effect.

关键词： Diversification Strategy CEO Compensation Gap Company Performance

作者: LI Guodong

作者单位: Research Base of Economy and Management School of Civil Aviation University of China / MBA Education Center of Civil Aviation University of China, Tianjin, 300300

会议类型: 国际会议

会议名称: The Sixth International Symposium on Corporate Governance(第六届公司治理国际研讨会)

会议地点: 大连

会议语种:英文

页码: 502-509

在线出版日期: 2011-08-20（万方平台首次上网日期，不代表论文的发表时间）