The Study On The Effect Of Executive Compensation And Political Connections On Social Responsibility Information Disclosure Quality Of Private Enterprises

In recent years,enterprises in the pursuit of financial performance but also need to meet the requirements of sustainable development,actively fulfill social responsibilities.Research on the social responsibility information is a difficult and hot topic in academic circles at home and abroad.Research on social responsibility in the West is relatively mature,but our country started late.With the deepening of the concept of harmonious society in our country,corporate social responsibility is gradually receiving attention.Our country is in the period of economic transition,the government still has the resources what is needs for business development,private enterprises can rely on political connections to get more concessions from the government,and in order to maintain such a "relationship," private enterprises will also respond positively to the government's call to fulfill their social responsibilities.Corporate executives,as one of the stakeholders,make decisions about the disclosure of social responsibility information that will affect the economic and social benefits of the enterprise,and play an important role in the disclosure of corporate social responsibility information.However,executives may not be motivated to take the initiative to disclose social responsibility information without corresponding reward incentives.In addition,if executives in private enterprises have a government background,political factors will promote their disclosure of environmental information.This article explores whether executive compensation and political connections of private enterprises have an impact on the disclosure of social responsibility information and further distinguishes private enterprises in heavily polluting industries and non-heavily polluting industries to study the regulatory role of political connections on executive compensation and social responsibility information.This article mainly includes five parts.The first part is the introduction.First of all,it expounds the research background and significance of this article,then reviews relevant literature both at home and abroad,and finally illustrates the research ideas and innovations.The second part is related concepts and theoretical basis.Defined the basic concepts of executive compensation,political connections and cor:porate social responsibility,and introduced the resource dependence theory,stakeholder theory,rent-seeking theory,principal-agent theory.The third part is theoretical analysis and research hypothesis.This part describes the status quo of corporate social responsibility information disclosure in our country,sorts out the influence of political connections and executive compensation on the quality of corporate social responsibility information disclosure,and based on this,puts forward the relevant research hypotheses.The fourth part is empirical research.This paper selects the A-share listed companies in China's private-owned enterprises voluntarily disclosing corporate social responsibility information from 2010 to 2015 as samples,examines empirically the impact of executive compensation and political connections on the quality of corporate social responsibility information disclosure,further distinguishes privately owned enterprises in heavily polluting industries and privately owned enterprises in non-heavily polluting industries to study the regulatory role of political connections on executive compensation and social responsibility information.The fifth part is the conclusion and policy recommendations.Research shows:(1)There is a significant positive correlation between executive compensation and the quality of corporate social responsibility information disclosure in private enterprises.Executive compensation plays a significant role in promoting the quality of information disclosure of private corporate social responsibility.(2)In the private enterprises,the political connection is positively related to the quality of corporate social responsibility information disclosure,political connections can promote the improvement of the quality of social responsibility information disclosure.(3)Political affiliations in heavily polluting industries in private sector will reinforce the positive correlation between executive compensation and the quality of corporate social responsibility information disclosure,but not significant in privately-run non-heavily polluting industries.There are some innovations of this article:(1)At present,most scholars at home and abroad study the relationship between executive compensation and corporate performance or enterprise value.There are few studies on executive compensation for corporate social responsibility.This thesis chooses to study the social responsibility behavior of private enterprises from the perspective of executive compensation.(2)In the past,most of the related literatures studied the relationship between political connections and corporate social responsibility.In this paper,we introduce the executive compensation and study it with the combination of political connections and corporate social responsibility.And further distinguish between heavily polluting industries in private enterprises and non-heavily polluting industries to study the regulatory role of political connections on executive compensation and corporate social responsibility respectively.