Author(s)

Sanxi Cai ¹

Affiliation(s)

¹ Economic & Management College, Zhaoqing University, Zhaoqing, China

Corresponding Author

Sanxi Cai

ABSTRACT

Taking Chinese A-share listed companies from 2007 to 2017 as samples, this paper empirically tested the influence of CEO's military experience on pay gap and pay stickiness gap respectively. The study found that the military experience of CEOs was significantly negatively correlated. The study found that the military experience of CEOs was significantly negatively correlated with the pay gap and the pay stickiness gap, indicating that the military experience of CEOs could narrow the pay gap and reduce the pay stickiness gap. The conclusion remained unchanged after the use of propensity score matching. The implication of this paper is that the psychological quality, sense of social responsibility, ethical awareness, and values of managers with military experience are different from those of managers without military experience. They can play a role in suppressing the pay gap and the pay stickiness gap by virtue of their unique advantages. Managers with military background are conducive to better internal corporate governance mechanisms.

KEYWORDS

Military experience; Pay gap; Pay Stickiness gap

CITE THIS PAPER

Sanxi Cai, Fair Results and Fair Rules—Based on the Influence of CEO's Military Experience on Salary Distribution. Accounting and Corporate Management (2023) Vol. 5: 80-85. DOI: http://dx.doi.org/10.23977/acccm.2023.051213.

REFERENCES

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[3] Benmelech E, Frydman C. Military CEOs [J]. Nber Working Papers, 2015, 117(1):43-59.
[4] Luo J H, Xiang Y, Zhu R. Military top executives and corporate philanthropy: Evidence from China [J]. Asia Pacific Journal of Management, 2017, 34(1):1-31.
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