Journal of Northeastern University(Natural Science) ›› 2021, Vol. 42 ›› Issue (7): 1049-1056.DOI: 10.12068/j.issn.1005-3026.2021.07.020

• Management Science • Previous Articles     Next Articles

Empirical Study on Influence of Directors’ Network Position on Executive Compensation

SUN Chen, ZHUANG Xin-tian   

  1. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Revised:2020-10-22 Accepted:2020-10-22 Published:2021-07-16
  • Contact: SUN Chen
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Abstract: The method of social network was used to analyze the influence of directors’ network position on executive compensation based on the directors’ network formed by the “director cross appointment”, and the mediating effect of management rights and the moderating effect of property rights.The results showed that after controlling the other factors, the higher the directors’ network centrality and structural hole index, the stronger the inhibition effect on executive compensation level. Compared with the non-state-owned enterprises, the negative correlation between directors’ network position and executive compensation is weaker in the state-owned enterprises. Management rights play an intermediary role in the inhibition of directors’ network position on executive compensation.

Key words: directors’ network; executive compensation; property right nature; management power; corporate governance

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