Research Article
A Study of the Impact of Auditors' Industry Expertise on the Sensitivity of Executive Compensation Performance
@INPROCEEDINGS{10.4108/eai.8-12-2023.2344727, author={Yaqin Wu and Leping Shi}, title={A Study of the Impact of Auditors' Industry Expertise on the Sensitivity of Executive Compensation Performance}, proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2024}, month={4}, keywords={auditor industry specialization; salary incentives; accounting information quality; performance sensitivity of executive}, doi={10.4108/eai.8-12-2023.2344727} }- Yaqin Wu
Leping Shi
Year: 2024
A Study of the Impact of Auditors' Industry Expertise on the Sensitivity of Executive Compensation Performance
MSIEID
EAI
DOI: 10.4108/eai.8-12-2023.2344727
Abstract
The article empirically investigates the effect of auditor expertise on executive pay-performance sensitivity and examines the channels and mechanisms of its effect. The results show that auditor expertise significantly enhances executive pay-performance sensitivity, with accounting information quality playing a partial mediating role; further analysis reveals that this effect is more pronounced in state-owned enterprises. The findings of the study enrich the results in the field of factors influencing executive compensation incentives and the governance effect of external audit, and are of practical significance for optimizing the incentive mechanism of executive compensation.
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