Abstract：Based on the optimal compensation contract theory, this study takes China’s A-share listed companies from 2007 to 2020 as a sample to examine the executive pay-for-collection risk sensitivity. The results show that the executive pay-for-collection risk sensitivity exists in China’s listed companies, that is, the lower the risk of accounts receivable collection, the higher the compensation of executives. Further research shows that the executive pay-for-collection risk sensitivity is stronger in the case of lower risk tolerance of corporate controlling shareholders (higher operational risk, private enterprises) and lower controllability of accounts receivable collection risk (lower customer concentration, high-tech enterprises, non-regulated industries, and region with a lower level of trust). The study of economic consequences shows that the stronger executive pay-for-collection risk sensitivity, the lower the risk of stock price collapse and bankruptcy, and the higher the value of the enterprise in the following year.
