Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)

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The Impact of Corporate Governance Performance on Executive Compensation: An Empirical Study of Listed Companies

Authors
Yiying Wang1, *
1Xi’an Jiaotong Liverpool University, Suzhou, 215123, China
*Corresponding author. Email: Yiying.Wang2303@student.xjtlu.edu.cn
Corresponding Author
Yiying Wang
Available Online 29 April 2026.
DOI
10.2991/978-94-6239-642-5_25How to use a DOI?
Keywords
executive compensation; corporate governance; ESG; ownership structure; China
Abstract

Executive compensation has long been at the center of corporate governance debates, particularly in emerging markets such as China. Over the past decade, managerial pay in Chinese listed firms has risen sharply, raising concerns about governance efficiency and incentive alignment. This paper investigates the impact of governance performance—measured by Environmental, Social, and Governance (ESG) governance scores—on executive compensation among A-share listed companies between 2012 and 2022. Using firm-level panel data and fixed-effects estimation, the study examines whether stronger governance mitigates excessive executive pay and enhances the link between pay and performance. Results indicate that higher governance scores are significantly associated with lower compensation levels and stronger pay–performance sensitivity, particularly among privately owned enterprises. These findings highlight the importance of effective governance systems in ensuring equitable and performance-based pay structures in China.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
29 April 2026
ISBN
978-94-6239-642-5
ISSN
2352-5428
DOI
10.2991/978-94-6239-642-5_25How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yiying Wang
PY  - 2026
DA  - 2026/04/29
TI  - The Impact of Corporate Governance Performance on Executive Compensation: An Empirical Study of Listed Companies
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 242
EP  - 248
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_25
DO  - 10.2991/978-94-6239-642-5_25
ID  - Wang2026
ER  -