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Research on the impact of digital transformation on executive compensation

Author

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  • Chen, Zhen
  • Gao, Jie
  • Li, Fang
  • Nguyen, Thithuha

Abstract

This study investigates how digital transformation influences executive compensation using panel data from Chinese A-share listed firms (2008–-2020). The results demonstrate that digital transformation significantly increases executive compensation through two primary channels: enhancing executives’ human capital and improving firm performance. The effects are particularly pronounced in manufacturing firms and those with low marketization level. This finding supplements the new evidence on the motivations of digital transformation from the perspective of executive compensation.

Suggested Citation

  • Chen, Zhen & Gao, Jie & Li, Fang & Nguyen, Thithuha, 2025. "Research on the impact of digital transformation on executive compensation," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008888
    DOI: 10.1016/j.frl.2025.107629
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    References listed on IDEAS

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