How Ownership and Corporate Governance Influence Chief Executive Pay in China's Listed Firms

Abstract

The authors thank Jean McGuire and three anonymous reviewers whose helpful comments and suggestions greatly improved the paper. The authors also thank Kevin Chen, Charles Chen, and participants at a Hong Kong Polytechnic University Workshop for helpful comments on earlier versions of the paper. The authors also acknowledge financ ial support from a Hong Kong SAR

State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

“…For example, in firms with high levels of state ownership, governments usually appoint top management positions to former bureaucrats, who typically do not have professional business and management backgrounds (Firth, Fung, & Rui, 2007;Zou & Adams, 2008). Such managerial position arrangements reduce operational efficiency of firms and are detrimental to firm performance (Zou & Adams, 2008).…”

Does Corporate Governance Affect Stock Liquidity in the Tunisian Stock Market?

“…Many categories of owner behave differently, according to their interests and preferences (Pederson and Thomsen, 2000 and Thomsen and Pederson, 2003). In emerging economies, owner identity is more important than ownership concentration (Dyck, 2000;Firth et al 2007;Omran et al 2008;Wu et al 2009 andChi and). We consider dummies proxies to distinguish three owner groups: family (CFAM), State (CSTA) and foreign investor (CFOR) such that:…”

“…We notice that these firms may be controlled by State, or family or even foreign investors. So we test if the corporate governance scheme depends on the shareholder's identity (in Chinese market, it is closely related to this identity, see among others Firth et al, 2007;Chi and Wang, 2009;Wu et al 2009). …”

The Relationship between Long-Term Incentives and Corporate Performance: A Theoretical Review

“…At the same time the relationship between EVA and compensation was weak. Firth, Fung, and Rui (2007) conducted a study to ascertain how ownership and corporate governance structure influence chief executive pay in China's listed firms. The focus of their study was on nonfinancial companies listed in Shanghai and Shenzhen Stock Exchanges between 1998 and 2000.…”