Research on the Influence of Traditional Culture on Executives' Excessive Perks
Abstract
Taking the observation of A-share listed companies in Shanghai and Shenzhen from 2007 to 2015 as a sample, this paper empirically examines the influence of Chinese traditional culture on the excessive perks of executives. The finding shows that the greater the influence of listed companies on cultural traditions, the lower the over-employment consumption level of company executives. This indicates that traditional culture, as an important informal cultural factor in the social system, can inhibit executives from violating business ethics. Moreover, compared with State-owned companies in a strong regulatory environment, this effect above is more pronounced in private companies with weaker regulatory environment, indicating that traditional culture and formal institutions play a complementary role. Further, the traditional culture is divided into Buddhism culture and Taoism culture to test these two different cultural impacts on executives excess perks. It is found that both Buddhism culture and Taoism culture are significantly negative with the excessive perks of executives, implying that these two traditional cultures commonly promote moral and ethical compliance.
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DOI: https://doi.org/10.18686/aat.v2i1.1306
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