| Summary: | 碩士 === 國立交通大學 === 財務金融研究所 === 102 === With the previous literature about pay-for-performance effect and the new notion, demographic dividend, brought up in recent years, this paper firstly seeks to link two concepts together. High demographic dividends suggest powerful spending capacity, and exploring emerging market with high dividends may bring in considerable potential revenue for the enterprises. Therefore, we derive that CEO should engage in extending the consumer base to emerging markets with higher demographic dividends rather than just operating the existing markets. With new markets attaining, CEO may improve his compensation because of higher revenue and also higher demographic dividend which implies potential revenue. Moreover, this paper also suggests that the positive relation between demographic and CEO compensation is more obvious after the worldwide financial crisis in 2007-2008 and for service industry, especially the general service industry excluding finance and insurance.
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