Export diversification, CEO compensation and CEO pay-performance sensitivity: lesson from china

The main objective of the research is to investigate the impact of export divergence, and CEO-pay performance sensitivity on CEO compensation. We construct a new degree of export-related diversification for Chinese listed firms and find that higher levels of export-related diversification results in higher levels of CEO compensation. Moreover, export diversification enhances the CEO pay-performance sensitivity. Our findings are consistent with a variety of model assumptions, such as a Difference-In-Difference regression estimate that accounts for missing variables. Finally, we find evidence that export diversification increases CEO compensation by reducing information symmetry. The study on business diversity is expanded in this work, and it offers compelling indication of the link among such diversification and CEO recompense.