Research on the Influence of Excess Perks on Firm Value: Based on the Perspective of Life Cycle Theory

Abstract

Since the separation of ownership and control rights, there have been a series of corporate agency problems. As a common agency problem, managerial perks has certain objectivity and inevitability. This paper focused on the influence of excess perks on firm value in different life cycle stages. The research object of this paper was the A-share listed companies in Shanghai and Shenzhen from 2011 to 2020. After empirical analysis, the conclusions were drawn: (1) Executives’ excess perks has a significantly positive impact on firm value in the growth and maturity stages; (2) Executives’ excess perks has a significantly negative impact on firm value in the decline stage. The research conclusions of this paper provide important reference for firm management governance and decision-making in different life cycle stages, aiming to make contributions to enhancing firm value and promoting sustainable development of firms.