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Can government regulation curb excessive on-the-job consumption by corporate executives?

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  • Lu, Lijun
  • Wang, Chengwei
  • He, Limiao
  • Li, Juan
  • Zheng, Yinglong

Abstract

Using data from a sample of Chinese listed companies between 2009 and 2022, this study analyzes the relation between government regulation and excessive consumption by corporate executives during their tenure. Results indicate a significant negative correlation between government regulation and excessive consumption by corporate executives. Mechanism analysis reveals that business environment plays a crucial mediating role in this relation. Heterogeneity analysis shows that the mediating effect of the business environment is significant in the eastern region, where the administrative law enforcement effect is stronger, but not in the central and western regions. Moreover, corporate size exhibits a threshold effect in the relation between the two variables.

Suggested Citation

  • Lu, Lijun & Wang, Chengwei & He, Limiao & Li, Juan & Zheng, Yinglong, 2025. "Can government regulation curb excessive on-the-job consumption by corporate executives?," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003198
    DOI: 10.1016/j.frl.2025.107055
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    References listed on IDEAS

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