Can digital economy reduce corporate executive pay stickiness?

Zirong Li, Jingbo Li and Bo Zhao

Finance Research Letters, 2025, vol. 82, issue C

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.

Keywords: Digital economy; Executive pay stickiness; Adjustment cost; Agency conflict (search for similar items in EconPapers)
JEL-codes: E00 G00 O15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007469

DOI: 10.1016/j.frl.2025.107487

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