The Impact Of Executive Incentives,Executive Characteristics On On-the-job Consumption

The separation of ownership and management rights has created increasingly serious agency problems for listed companies.As one of the typical performances of agency problems,the existence of on-the-job consumption has a certain degree of objective necessity and positive effect.However,in recent years,the on-the-job consumption of executives far exceeds a reasonable range,resulting in the continuous rise of corporate agency costs,which has caused a serious negative impact on corporate value and resource allocation.In order to make on-the-job consumption play a positive incentive effect,it is necessary to look for the causes of on-the-job consumption inside the enterprise and take measures to control it within a reasonable range.So,as the actors of the behavior of on-the-job consumer in listed companies——the executives of listed companies,whether the company's incentive mechanism,the managers' personal characteristics will affect their psychological status,and then affect their behaviors? Theoretically speaking,debt financing can motivate and constrain the behavior of executives,it can mitigate agency conflicts and reduce agency costs to a certain extent.So,whether the relationship between executive incentives,executive characteristics and on-the-job consumption will change when the level of debt financing changes? How? This is the main question that this article needs to answer.This article selects listed companies of A shares in the stock markets of Shanghai and Shenzhen from 2012 to 2016 as research subjects,based on important theories such as motivation theory and high-level echelon theory,it empirically analyzes the effects of executive incentives,executive characteristics on on-the-job consumption from executive equity incentives,executive compensation incentives,executive age,executive gender,executive education,and from the perspective of debt governance,it examines whether debt financing has a moderating effect on the relationship between executive incentives,executive characteristics,and on-the-job consumption.The main research conclusions show that: executive compensation incentives,executive age,executive education and on-the-job consumption are significantly positively correlated,executive equity incentives are significantly negatively related to on-the-job consumption,while executive gender has no significant effect on on-the-job consumption;the test of moderating effect shows that as an important external governance mechanism,debt financing can adjust the relationship between executive compensation incentives,executive equity incentives,executive education and on-the-job consumption.After distinguishing between state-owned and non-state-owned enterprises,it is found that the impact of executive incentives,executive characteristics on on-the-job consumption,and the moderating effect of debt financing are somewhat different.According to the research results of this article,the author suggests that we should look for the causes of on-the-job consumption from the psychological factors of the person who enjoy on-the-job consumption,and propose solutions for them.Further,We find that when the level of debt financing changes,the impact of executive incentives,executive characteristics on on-the-job consumption also changes,indicating that it is possible for listed companies to effectively control the level of the company's on-the-job consumption by rationalizing the debt financing structure of the enterprise and combining the design of the internal incentive mechanism of the enterprise.