Does the Pay Gap in the Top Management Team Incent Enterprise Innovation?—Based on Property Rights and Financing Constraints

Hou, Jingru

doi:10.4236/ajibm.2018.85088

Cited by 11 publications

(7 citation statements)

References 21 publications

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“…Based on this, we draw on Boeing (2016) patent applications as an innovation indicator, and the application is closer to the time of invention, and it is also a summary of the current technology application and innovation. At the same time, according to Hu and Jefferson (2009), Bronzini and Piselli (2016), and Hou (2018), the patent application count (Patnet) is taken as the innovation quantity, and then the innovation quality from high to low is represented by invention patent application (Patenti), utility model patent application (Patentu) and design patent application (Patentd), respectively. The actual basis for this innovative quality classification comes from the classification of patents by the Chinese Patent Office.…”

Section: Innovation Qualitymentioning

confidence: 99%

Environmental regulation, innovation quality and firms’ competitivity―Quasi-natural experiment based on China’s carbon emissions trading pilot

Huang

Chen

2020

Economic Research-Ekonomska Istraživanja

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In the study of the "Porter Hypothesis", scholars explored the impact of different forms of innovation on the firms' competitivity, but did not distinguish between innovations on the difference in patent quality. In addition, relevant research only regards innovation as a mediator between environmental regulation and competitivity, and doesn't take into account innovation induced by environmental regulation, can only promote competitivity under the constraints of environmental regulation. That is to say, environmental regulation not only induces innovation, but also moderates innovation to promote competitivity. In view of this, we use panel data of A-share listed firms in China from 2006 to 2016, and adopt propensity score matching and different in different (PSM-DID) model to empirically test the inductive effect and moderating effect. The results show that CETS cannot only improve the quantity and quality, but also significantly enhance the firms' market value; innovation itself cannot enhance the firms' market value, but the interaction with CETS can promote the firms' market value. In addition, the CETS has a stronger inductive effect on innovation of state-owned shares firms, but the positive moderating effect on high-quality innovation and competitivity only exists in non-state-owned shares firms.

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Section: Innovation Qualitymentioning

confidence: 99%

Environmental regulation, innovation quality and firms’ competitivity―Quasi-natural experiment based on China’s carbon emissions trading pilot

Huang

Chen

2020

Economic Research-Ekonomska Istraživanja

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“…Li and Wang (2022) argued that when the CEO also served as the chairman of the board of directors, acting as the “single line liaison” between the board of directors and the enterprise, the compensation of the CEO was much higher than that of non-CEO executives and the CEO-TMT internal compensation gap was negatively correlated with the corporate performance. The increase in the compensation gap of the executive team can motivate executives to make innovative decisions and improve innovation performance ( Hou, 2018 ). Mountouri (2019) explored the effect of the within-board compensation gap on the performance of the organization, the results suggested that the firm performance was affected positively by the compensation gap when measured as the Return on Assets, the Return on Equity, or Tobin’s Q.…”

Section: Discussionmentioning

confidence: 99%

A study on the relationship between compensation gap within the top management team and corporate performance: An empirical research based on the moderation effect of fairness preference

Wang

Chen²,

Zhou³

et al. 2022

Front. Psychol.

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This study explores the relationship between the compensation gap within the top management team (TMT) and corporate performance. We focus on how the fairness preference of the TMT moderates this relationship. The existing researches on the relationship between the compensation gap within the TMT and corporate performance are inconclusive. The reason may be that the traditional tournament theory is based on the hypothesis of self-interest preference of homo economicus. In the research, the fairness preference theory is added to the traditional tournament model, and a more realistic tournament model considering fairness preference is constructed. Based on the analysis of the theoretical model and the empirical regression analysis of the panel data of 733 non-financial A-share listed companies in Shanghai and Shenzhen stock markets from 2014 to 2020, we draw the following main conclusions: (1) There is an inverted U-shaped relationship between the TMT compensation gap and the corporate performance. Within the optimal compensation gap, there is a significant positive correlation. The larger the compensation gap, the better the corporate performance will be. When the optimal compensation gap is exceeded, there is a significant negative correlation. The larger the compensation gap, the worse the corporate performance will be. (2) The fairness preference of the TMT will weaken the correlation between the TMT compensation gap and corporate performance. Within the optimal compensation gap, the fairness preference will weaken the positive relationship between them, and when it exceeds the optimal compensation gap, the fairness preference will also weaken the negative relationship between them.

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“…At the same time, some scholars use design patents and utility patents to measure low-quality innovation. For example, Hou (2018) used patents for inventions that are recognized as high-quality patents, and non-invention patents, such as utility model and design patents, are recognized as low-quality patents [48]. This paper further divides the number of patents using the number of invention patents to represent high-quality innovation and the number of utility model and design patents to represent low-quality innovation.…”

Section: Dependent Variablesmentioning

confidence: 99%

Market-Incentive Environmental Regulation and the Quality of Corporate Innovation

Shi

2023

Sustainability

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Environmental issues have received worldwide attention in recent years, and a large body of literature has focused on environmental regulations and business innovation. However, very few studies examine the effects of market-incentive-based environmental regulation policies on the quality of corporate innovation. Thus, this paper uses China’s A-share listed enterprises in 2010–2020 and China’s carbon trading policy (CCTP) to conduct a quasi-natural experiment. The results show that the CCTP significantly increases the quality of innovation but does not affect the quantity of firm innovation. Furthermore, according to the result of heterogeneity analysis, the effect of CCTP on high-quality innovation occurs mainly in low-financialization and non-state enterprises.

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Does the Pay Gap in the Top Management Team Incent Enterprise Innovation?—Based on Property Rights and Financing Constraints

Cited by 11 publications

References 21 publications

Environmental regulation, innovation quality and firms’ competitivity―Quasi-natural experiment based on China’s carbon emissions trading pilot

Environmental regulation, innovation quality and firms’ competitivity―Quasi-natural experiment based on China’s carbon emissions trading pilot

A study on the relationship between compensation gap within the top management team and corporate performance: An empirical research based on the moderation effect of fairness preference

Market-Incentive Environmental Regulation and the Quality of Corporate Innovation

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