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

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

Finance Research Letters, 2025, vol. 77, issue C

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.

Keywords: Government regulation; Excessive consumption by corporate executives; Business environment; Administrative effectiveness; Corporate size (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325003198
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003198

DOI: 10.1016/j.frl.2025.107055

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().