The Impact Of Abnormal Low Executive Compensation On Corporate Environmental Responsibility

Since the financial crisis of 2008,the company executive compensation problem becomes a hot concern,"sky-high compensation"?"relationship compensation" are also hot topics.Under such social pressure,the decreasing of company top managers compensation and the taking "one yuan salary"?"zero salary" phenomena are more and more in our country.The public hold different opinions to those issues,some think that the executives accept abnormal low salary or do not accept salary is a reflection of the executives' responsibility,but others think that those actions are just strategies to release social stress and to build good images.With the development of industrialization and urbanization,the environmental problem is increasingly severe,protecting environment and chasing high-quality surroundings becomes one aspect to solve the contradiction between the people's growing demands of good life and the unbalanced-development problem.As important members of society,enterprises actually should take on environmental responsibility.The public focus more on enterprises doing their environmental duty,our government also introduce some policies on environmental protection to speed up the change from extensive production pattern to high efficiency?environmental-friendly production pattern.From the point of "impression management",combined with asymmetric information theory and signalling Theory,we take the data of all A-share listed companies in China from 2008 to 2014 as the research sample to analysis the impact of top managers' abnormal low salaries on the enterprise environmental responsibility,to research that whether the positive attention that "one yuan salary" plan makes will release the enterprise environmental performance,and from the aspect of property nature,to research the nature of firms' effect on the impact above.The empirical results show that the "one yuan salary" plan will make companies'environmental performance poorly,in other words,it is possible that enterprises use the positive images that "one yuan salary" plan makes to reduce the environmental performance and information disclosure.In addition,differentiating between state-owned-enterprises and non-state enterprises,the research shows the impact of top managers' abnormal low salaries on the enterprise environmental responsibility is still remarkable on non-state enterprises but unremarkable on state-owned-enterprises.According to the research conclusion,we put forward some thinking about improving the executives' salary system,and perfecting the disclosure about executives'salary of listed companies.Otherwise,we hope that the research can offer a new angle of view to analysis the information companies published and the signal they released.