IDEAS home Printed from https://ideas.repec.org/a/pkp/ijomas/v14y2025i3p864-883id4419.html
   My bibliography  Save this article

Executive compensation incentives and corporate performance: The moderating role of dual roles and governance insights

Author

Listed:
  • He Qian

  • Salawati Binti Sahari

Abstract

This study examines how executive compensation influences corporate performance, with a focus on the moderating effect of executives holding concurrent roles in shareholder units. Using 2023 data from 5,032 A-share listed firms in China and applying multiple linear regression with ROA as the performance metric, the results show a positive link between executive pay and performance. However, when dual roles exist, total management compensation negatively affects performance, suggesting agency issues arising from power concentration. In contrast, compensation for core executives (the top three earners) enhances performance, highlighting the value of targeted incentives. These findings underscore the need for differentiated compensation structures aligning general management pay with short-term goals and core executive rewards with long-term objectives. The study offers insights into optimizing governance and incentive design in China’s corporate sector.

Suggested Citation

  • He Qian & Salawati Binti Sahari, 2025. "Executive compensation incentives and corporate performance: The moderating role of dual roles and governance insights," International Journal of Management and Sustainability, Conscientia Beam, vol. 14(3), pages 864-883.
    • Handle: RePEc:pkp:ijomas:v:14:y:2025:i:3:p:864-883:id:4419
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/11/article/view/4419/8740
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:ijomas:v:14:y:2025:i:3:p:864-883:id:4419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/11/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.