A Study on the Correlation between Job Consumption and Performance of Chinese Companies

Abstract

The purpose of this paper is to explore the relationship between corporate governance structure, job consumption, and firm performance in listed companies in China using a sample of listed companies in Shanghai and Shenzhen from 2014 to 2018. Design/Methodology/Approach Based on empirical analysis, the paper studies the moderating role of the nature of a company on the relationship between job consumption and firm performance, which finds that in-service consumption has a negative correlation with performance, and it has a greater impact on performance in state-owned corporations. Therefore, we put forward three suggestions, Improving the mechanism of supervision and impose additional restrictions on job consumption, Improving the management salary system and establish a reasonable budget and Improving the management equity incentive mechanism. Findings The paper finds that job consumption has a certain inhibitory effect on enterprise performance, and job consumption have a greater impact on firm performance in state-owned enterprises. Research Implications The paper offers a theoretical and empirical framework for further formulating and promoting relevant policies on disclosure, compensation, and incentives for job consumption, which will also provide reference for other scholars’ follow-up research