Proceedings of the 2026 2nd International Conference on Data Mining and Project Management (DMPM 2026)

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Executive Compensation Stickiness and Value Creation: Evidence from Chinese State-Owned Listed Enterprises

Authors
Bingshi Zhang1, *, Ting Chen1
1State Grid Energy Research Institute CO., LTD., Beijing, 102209, China
*Corresponding author. Email: stone_bjtu@163.com
Corresponding Author
Bingshi Zhang
Available Online 28 May 2026.
DOI
10.2991/978-94-6239-689-0_5How to use a DOI?
Keywords
State-Owned Enterprises; Executive Compensation Stickiness; Corporate Value Creation; Production and Operation Efficiency
Abstract

The phenomenon of executive compensation stickiness in state-owned enterprises reflects a lack of contract effectiveness and has a significant impact on firms’ value creation capacity. This study constructs a panel dataset covering state-controlled A-shares listed companies in China from 2010 to 2022, and empirically examines the effect of compensation stickiness on corporate value creation. Based on pay-performance sensitivity and information asymmetry theory, a compensation stickiness index is developed. The baseline regression is conducted using fixed effects models, while robustness is tested through alternative measurements, propensity score matching (PSM), and instrumental variable (IV) approaches to mitigate endogeneity. Results show that higher levels of compensation stickiness significantly hinder corporate value creation. Mechanism analysis further reveals that the negative impact operates mainly through reduced resource allocation efficiency and constrained growth potential. Heterogeneity tests suggest that this effect is more pronounced in local SOEs, non-high-tech firms, and firms in low-competition or weak legal environments. These findings provide empirical support for strengthening incentive and constraint mechanisms in SOEs and offer policy implications for enhancing internal governance and advancing reform.

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 2nd International Conference on Data Mining and Project Management (DMPM 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
28 May 2026
ISBN
978-94-6239-689-0
ISSN
2352-5428
DOI
10.2991/978-94-6239-689-0_5How 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  - Bingshi Zhang
AU  - Ting Chen
PY  - 2026
DA  - 2026/05/28
TI  - Executive Compensation Stickiness and Value Creation: Evidence from Chinese State-Owned Listed Enterprises
BT  - Proceedings of the 2026 2nd International Conference on Data Mining and Project Management (DMPM 2026)
PB  - Atlantis Press
SP  - 36
EP  - 48
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-689-0_5
DO  - 10.2991/978-94-6239-689-0_5
ID  - Zhang2026
ER  -