The correlation between profits and losses from changes in fair value and executive compensation: Evidence from A-share listed companies in China

Abstract

This study exams the correlation of executive compensation and profit and loss from change of fair value. At the compensation part, the research shows that both chairman and CEO compensation have a negative correlation with profit and loss from change of fair value. Moreover, there is no significant correlation between CFO compensation and profit and loss from change of fair value. Other revenue shows a positive correlation with profit and loss from change of fair value. Beside, with all variables variables mentioned in this research are consistent, 2018 has a special effect on executive compensation, comparing with other years (2009 to 2017).