Document Type
Journal article
Source Publication
Journal of Business Research
Publication Date
7-1-2007
Volume
60
Issue
7
First Page
776
Last Page
785
Publisher
Elsevier Inc.
Keywords
Ownership; Board structure; Executive compensation
Abstract
This article contributes to the international corporate governance literature by examining factors that affect CEO compensation in China. The article develops models of CEO pay based on an understanding of the unique economic and structural reforms undertaken by the privatized State Owned Enterprises. The findings show that CEO compensation depends, in part, on the firm's operating profits and this indicates that incentive systems are being used to motivate top managers. Corporate governance factors have a significant impact on CEO compensation, but they do so in ways that differ from those in other countries. The conclusions are robust across different formulations of the basic model and they have public policy implications for China and other transitional economies that are moving away from state ownership of business enterprises.
DOI
10.1016/j.jbusres.2007.01.014
Print ISSN
01482963
E-ISSN
18737978
Publisher Statement
Copyright © 2007 Elsevier B.V. All rights reserved.
Access to external full text or publisher's version may require subscription.
Full-text Version
Accepted Author Manuscript
Language
English
Recommended Citation
Firth, M., Fung, P. M. Y., & Rui, O. M. (2007). How ownership and corporate governance influence chief executive pay in China's listed firms. Journal of Business Research, 60(7), 776-785. doi: 10.1016/j.jbusres.2007.01.014