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Can digital economy reduce corporate executive pay stickiness?

Author

Listed:
  • Li, Zirong
  • Li, Jingbo
  • Zhao, Bo

Abstract

This study analyzes the impact of the digital economy on executive compensation stickiness using a panel of listed companies in China from 2008 to 2021. Results indicate that advancements in the digital economy decrease executive compensation stickiness; a 1 % increase in regional digital economy reduces stickiness by 0.9399 %. Heterogeneity analysis shows this effect is weaker in larger firms, those with higher social responsibility, and greater institutional investor proportions. Overall, the study highlights the digital economy's potential to reduce executive compensation stickiness.

Suggested Citation

  • Li, Zirong & Li, Jingbo & Zhao, Bo, 2025. "Can digital economy reduce corporate executive pay stickiness?," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007469
    DOI: 10.1016/j.frl.2025.107487
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    1. Xue, Mingfu, 2025. "Minimum wage system and corporate tax burden stickiness," Finance Research Letters, Elsevier, vol. 84(C).

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G00 - Financial Economics - - General - - - General

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