Research On The Impact Of Air Pollution On Executive Compensation:Evidence From Chinese Listed Companies

In recent years,air pollution represented by PM2.5 has been widely concerned,and environmental issues have become a hot issue in society and have attracted the attention of the whole society.The report of the 19th National Congress of the Communist Party of China also pointed out that "accelerate the reform of the ecological civilization system and build a beautiful China." This shows that air pollution has a bearing on the vital interests of the broad masses of the people.Although there have been many studies in the academic world to explore the relationship between air pollution and human physical and mental health,the academic community has little research on the impact of air pollution on micro-individual economic activities.Working in areas with more serious air pollution,"health costs" and "emotional costs" are more serious,which will lead to more serious loss of human health and reduce the value of human capital.In order to compensate for the potential loss of human capital,company employees will require more financial compensation,especially for senior management personnel of the company with stronger bargaining power.Therefore,based on the interaction between external regional environment and micro-enterprise behavior,this paper uses the air pollution data at the regional level to examine the impact of air pollution on executive compensation.This paper takes the Shanghai-Shenzhen listed company from 2004 to 2016 as a research sample,and uses satellite-based data to measure the concentration level of regional pollutants,and analyzes the relationship between air pollution and executive compensation.The study found that:1)there is a significant positive correlation between air pollution level and executive compensation.The relationship is still positive after using the number of inversion effects as a tool variable to solve endogenous problems;2)using China Qinling-HuaiRiver heating line For geographical breakpoint analysis,it is found that the pollution level in northern China is greater than that in the south,and further affects the executive compensation level;3)After analyzing the changes in the company’s senior management,it was found that air pollution would reduce the entry of senior management.Rate and improve the turnover rate of incumbent executives;4)After further distinguishing the sample,it is found that the executive compensation of private enterprises,high capital-intensive enterprises and enterpris es with high employee education level is more sensitive to air pollution.The research in this paper not only enriches the impact of air pollution on microeconomic individuals,but also supplements the analysis of the impact of regional variables on executive compensation.It provides theoretical and empirical support for the human resources policy of Chinese enterprises,and also provides reliable theoretical support for the government governance environment.