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

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.

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Full-text Version

Accepted Author Manuscript

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