- Volume 15 Issue 1
DOI QR Code
The Corporate Life Cycle and Management Compensation
기업수명주기와 경영자 보상
- Kim, Ji-Hye (Business School, Korea University) ;
- Kim, Jin-bae (Business School, Korea University) ;
- Choi, Jeong-mi (Dept. of Accounting, Cheongju University)
- Received : 2016.11.30
- Accepted : 2017.01.20
- Published : 2017.01.28
The purpose of this study investigates the relation between corporate life cycle and management compensation. The analysis is performed by comparing the compensation level and pay-performance-sensitivity (PPS) at each life cycle based on Korean data from 2003 to 2014. The results show that regarding compensation level, mature stage has the highest mean value of compensation and compensation level drops after mature stage. In introduction stage, growth and decline stages, compensation is not sensitive to accounting performance. In a while, in mature stage, management compensation varies with accounting performance more significantly than stock performance. In additional analysis, the results indicate that the finding is not designated from growth opportunities and the relation differs when the firm is included in a conglomerate. These findings contribute to the literature by providing additional evidence to understand for compensation and the corporate life cycle studies.
Management compensation;Corporate life cycle;Pay performance sensitivity;Accounting performance;Stock performance
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