Proceedings of the 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)

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Executive Salary and TFP: Evidence from Chinese Listed Firms

Authors
Liman Zhang1, *
1China Agricultural University, Beijing, 100083, China
*Corresponding author.
Corresponding Author
Liman Zhang
Available Online 6 November 2025.
DOI
10.2991/978-94-6463-886-8_6How to use a DOI?
Keywords
Executive Salary; TFP; Panel Data Model
Abstract

Over the past decades, China has spared no effort to improve firms’ total factor productivity (TFP) and promote high-quality development. A substantial body of academic research has emerged on this topic. No doubt executive salary can influence managerial work attitudes and initiative, potentially reducing or enhancing firms’ TFP. But till to today, there is little in-depth academic research on the influence of executive salary on firms’ TFP.

This paper, building on a comprehensive literature review, conducts a theoretical investigation into the mechanisms through which executive salary influences TFP. Empirically, the study utilizes data from the CSMAR database, covering the years 2014 to 2023, and constructs a panel data model to perform regression analysis. The results indicate that, overall, executive salary has a significant negative effect on TFP. However, for firms with high levels of R&D investment, executive salary exerts a positive impact on TFP.

Copyright
© 2025 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 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
6 November 2025
ISBN
978-94-6463-886-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-886-8_6How to use a DOI?
Copyright
© 2025 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  - Liman Zhang
PY  - 2025
DA  - 2025/11/06
TI  - Executive Salary and TFP: Evidence from Chinese Listed Firms
BT  - Proceedings of the 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)
PB  - Atlantis Press
SP  - 44
EP  - 54
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-886-8_6
DO  - 10.2991/978-94-6463-886-8_6
ID  - Zhang2025
ER  -