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dc.contributor.authorKato, Takaoen_US
dc.contributor.authorLong, Cherylen_US
dc.date.accessioned2006-01-19en_US
dc.date.accessioned2010-07-07T09:07:27Z-
dc.date.available2010-07-07T09:07:27Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/33157-
dc.description.abstractThis paper provides evidence on how executive compensation relates to firm performance in listed firms in China. Using comprehensive financial and accounting data on China's listed firms from 1998 to 2002, augmented by unique data on executive compensation and ownership structure, we find for the first time statistically significant sensitivities and elasticities of annual cash compensation (salary and bonus) for top executives with respect to shareholder value in China. In addition, sales growth is shown to be significantly linked to executive compensation and that Chinese executives are penalized for making negative profit although they are neither penalized for declining profit nor rewarded for rising profit insofar as it is positive. Perhaps more importantly, we find that ownership structure of China's listed firms has important effects on pay-performance link in these firms. Specifically state ownership of China's listed firms is weakening pay-performance link for top managers and thus possibly making China's listed firms less effective in solving the agency problem. As such, ownership restructuring may be needed for China to successfully transform its SOEs to efficient modernized corporations and reform its overall economy.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 1767en_US
dc.subject.jelM52en_US
dc.subject.jelM12en_US
dc.subject.jelJ33en_US
dc.subject.jelP31en_US
dc.subject.jelP34en_US
dc.subject.jelO16en_US
dc.subject.jelG30en_US
dc.subject.jelO53en_US
dc.subject.jelG15en_US
dc.subject.ddc330en_US
dc.subject.keywordexecutive compensationen_US
dc.subject.keywordfirm performanceen_US
dc.subject.keywordcorporate governanceen_US
dc.subject.keywordownership structureen_US
dc.subject.keywordChinaen_US
dc.subject.keywordtransition economiesen_US
dc.titleExecutive compensation, firm performance, and corporate governance in China: evidence from firms listed in the Shanghai and Shenzhen stock exchangesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn504723804en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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