Abstract Taking the compensation reform system as the research background and Shanghai and Shenzhen A-share listed companies from 2010 to 2018 as the research samples, this paper examines the impact of compensation regulation on corporate earnings persistence and its components. The results show that compensation regulation has a significant negative impact on the persistence of corporate earnings and its components. At the same time, when the nature of enterprise property rights is different, the negative relationship between them is also different. The impact of compensation regulation on earnings persistence of state-owned enterprises is more significant than that of non-state-owned enterprises, and the impact on earnings persistence of central state-owned enterprises is also more significant than that of local state-owned enterprises. Further study indicates that managerial power enhances the negative relationship between compensation regulation and earnings persistence. The conclusions not only expand the research on the impact of compensation regulation on the long-term development of enterprises, but also provide empirical evidence for promoting compensation system reform and improving the implementation of compensation regulation.
2022, Vol. 39 
