Executive Compensation,Duality And Investment Effciency

Investment is an important way for enterprises to enhance their own value.Improving investment efficiency can efficiently allocate various assets of enterprises,promote the leapfrog growth of enterprise assets,and achieve sustainable economic development.This study explores how executive compensation affects the investment efficiency of a company from the perspective of a special organizational structure that combines two roles(i.e.the general manager and chairman).On the basis of existing research,this paper conducts theoretical discussion,puts forward research hypotheses,and conducts empirical tests based on the panel data of listed companies from 2010 to 2020.The main conclusions are as follows:(1)Executive compensation has a positive impact on corporate investment efficiency.The improvement of executive compensation can effectively reduce inefficient investment.The robustness test is carried out by replacing the core explanatory variable measure,and the above conclusions are still valid.(2)The organizational structure of combining two positions will strengthen the positive impact of executive compensation on investment efficiency improvement.In listed companies where the general manager concurrently serves as the chairman,the improvement of executive compensation level can further reduce inefficient investments.Furthermore,this article proposes the following suggestions:(1)Enterprises can scientifically and moderately increase executive compensation based on actual situations to achieve investment efficiency improvement.(2)Enterprises should adjust their management structure in a timely manner,and amplify the investment efficiency improvement effect of increasing executive compensation through a dual role organizational structure.Overall,this article explores how executive compensation affects investment efficiency from a new perspective of integrating two roles.The relevant research conclusions enrich the theoretical approaches for improving investment efficiency of enterprises and have strong reference significance for enterprise practice.