*5.2. Correlation Analysis*

The results of the Pearson correlation coefficient among variables involved in this model are illustrated in Table 5. It can be seen that the absolute values of the correlation coefficients between the main variables are all less than 0.5, demonstrating that the collinearity problem is not serious among the selected correlation indexes. As for the main explanatory variables, the correlation coefficient between economic policy uncertainty (EPU) and OverPay is −0.023 and significant, which indicates that rising economic policy uncertainty will inhibit executive excessive compensation, validating hypothesis H1a. The correlation coefficient between economic policy uncertainty (EPU) and UnPerks is 0.015 and significant, indicating that economic policy uncertainty will encourage C-suite excessive on-the-job consumption, validating hypothesis H1b. From the correlation between control variables and OverPay, corporate indebtedness, the shareholding ratio of the largest shareholder, and the number of independent directors are negatively correlated with OverPay. Meanwhile, the correlation coefficient between corporate operating cash flow and UnPerks is 0.108, which is significant. When the corporate operating cash flow rises, C-suite excessive on-the-job consumption will be boosted.


**Table 5.** Correlation analysis of variables.

\* *p* < 0.1, \*\* *p* < 0.05, \*\*\* *p* < 0.01.

#### *5.3. Collinearity Analysis*

Table 6 illustrates the results of the variance inflation factor (VIF) of related variables, which is used to test whether there is multicollinearity among explanatory variables selected in this model. As can be seen from Table 6, the VIF values of all relevant variables selected in this model are all less than 5, proving that no multicollinearity problem exists in this research model. Further analysis can be performed according to the design model.


**Table 6.** Multiple collinearity analysis.
