The Impact of Artificial Intelligence on Executive Compensation in Listed Companies
DOI:
https://doi.org/10.54097/sbq95v49Keywords:
Artificial Intelligence, Executive Compensation, Corporate Governance, Compensation DistributionAbstract
As artificial intelligence is elevated to a national strategic level and deeply integrated into the real economy, its core role in driving industrial upgrading and economic growth has become increasingly prominent. Executives, as key decision-makers in corporate strategy, have compensation levels that not only relate to agency costs and incentive effectiveness but also influence the fairness and efficiency of internal income distribution within enterprises against the backdrop of technological change. Based on data from A-share listed companies from 2007 to 2023, this study employs textual analysis to construct a firm-level indicator of AI application and systematically examines the impact of AI on executive compensation. The findings are as follows: First, AI significantly increases the compensation levels of executives in listed companies. This conclusion remains robust after addressing endogeneity concerns through methods such as instrumental variable approaches and conducting a series of robustness tests. Second, mechanism tests reveal that AI indirectly promotes the growth of executive compensation through three pathways: alleviating financing constraints, enhancing enterprise total factor productivity, and increasing the level of executive human capital. Third, the level of corporate governance plays a negative moderating role between AI and executive compensation, suggesting that sound internal governance mechanisms can effectively curb the potential expansion of managerial power and the capture of excess returns by executives during technological change.
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