Proceedings of the 2015 International Conference on Education, Management, Information and Medicine

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Effect of CEO Power on Executive Pay-Performance Sensitivity: A literature Review

Authors
Changzheng Zhang, Zhuoqin Gao
Corresponding Author
Changzheng Zhang
Available Online April 2015.
DOI
10.2991/emim-15.2015.93How to use a DOI?
Keywords
CEO Power; Executive pay-performance sensitivity (EPPS); Manipulation Effect; Executive Compensation; Literature review
Abstract

In order to reconcile the conflicting conclusions of research on the manipulation effect of CEO power on executive pay-performance sensitivity (EPPS) and further promote the research progress, the method of literature review is adopted by investigating and discussing the latest studies on this topic in detail. According to the review, as the result of interdisciplinary combination and theoretical integration, CEO power theory can actually explain the reality of low and asymmetric EPPS more effectively than traditional principal-agent theory, and the research of EPPS based on CEO power perspective should become the mainstream in this topic. Review results also show that manipulation effect of CEO power on EPPS does exist across the world. However, the strength and nature of such manipulation effect have not been recognized clearly. It is the newest trend to recognize that the manipulation effect of CEO power on EPPS is a kind of “contingent effect” instead of “absolute effect”. In the future, more scholars should discuss the critical contingent variables that can affect the relationship between CEO power and EPPS in depth, such as CEO tenure.

Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2015 International Conference on Education, Management, Information and Medicine
Series
Advances in Economics, Business and Management Research
Publication Date
April 2015
ISBN
10.2991/emim-15.2015.93
ISSN
2352-5428
DOI
10.2991/emim-15.2015.93How to use a DOI?
Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Changzheng Zhang
AU  - Zhuoqin Gao
PY  - 2015/04
DA  - 2015/04
TI  - Effect of CEO Power on Executive Pay-Performance Sensitivity: A literature Review
BT  - Proceedings of the 2015 International Conference on Education, Management, Information and Medicine
PB  - Atlantis Press
SP  - 476
EP  - 481
SN  - 2352-5428
UR  - https://doi.org/10.2991/emim-15.2015.93
DO  - 10.2991/emim-15.2015.93
ID  - Zhang2015/04
ER  -