Impact of Perk on Corporate Performance: The Mediating Effect of Agency Cost

Yulin GE, Jing YE

Abstract


As an important part of the executive compensation,perks can play a unique role in facilitating corporate performance. The relationship among agency cost, perk and corporate performance is a key issue faced by scholars. This paper selects companies listed on the Shanghai and Shenzhen stock exchanges from 2011 to 2016 as samples, excluding ST, ST * companies and financial insurance companies. We found that executive’s perk has a significant negative correlation with corporate performance. And executive’s perk has a significant positive correlation with agency cost. Through the influence of perk on corporate performance and agency cost, this study found that agency cost has a partial intermediary effect between perk and company performance.


Keywords


Perk; Corporate performance; Agency cost

Full Text:

PDF

References


Florackis, C. (2008). Agency costs and corporate governance mechanisms: evidence for UK firms. International Journal of Managerial Finance. (1), 37-59.

Hart, O. (2001). Financial contracting. Journal of Economic Literature, 39(4), 1079-1100.

Jelinek, K., & Stuerke, P. S. (2009). The nonlinear relation between agency costs and managerial equity ownership. International Journal of Managerial Finance, (2), 156-178.

Jensen, M. C., & Mecking, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.

Li, B. B., & Huang, S. C. (2012). The determinants and economic consequences of executive perks in SOE. Statistical Research, (6), 76-81.

Louis, T. W. C. (2018). Impact of perk expenditures and marketing expenditures on corporate performance in China: The moderating role of political connections. Journal of Business Research, (86), 83-95.

Luo, H., & Huang, W. H. (2008). Bonus, perk and corporate performance. Management World, (9), 139-147.

Rajan, R., & Wulf, J. (2006). Are perks purely managerial excess? Journal of Political Economy, (1), 1-33.

Williamson, O. E. (1979). Transaction cost economics: The governance of contractual relation. Journal of Law and Economics, (2), 233-261.




DOI: http://dx.doi.org/10.3968/10623

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Management Science and Engineering

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures