How ownership and corporate governance influence chief executive pay in China's listed firms

Michael Arthur FIRTH, M. Y., Peter FUNG, Oliver M. RUI

Research output: Journal PublicationsJournal Article (refereed)

141 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)776-785
Number of pages10
JournalJournal of Business Research
Volume60
Issue number7
DOIs
Publication statusPublished - 1 Jul 2007

Fingerprint

Ownership
Executive pay
Corporate governance
Chief executives
CEO compensation
China
Factors
State-owned enterprises
Structural reforms
CEO pay
Business enterprise
Incentive systems
State ownership
Public policy
Profit
International corporate governance
Policy implications
Managers
Economic reform
Transitional economies

Keywords

  • Ownership; Board structure; Executive compensation

Cite this

FIRTH, Michael Arthur ; FUNG, M. Y., Peter ; RUI, Oliver M. / How ownership and corporate governance influence chief executive pay in China's listed firms. In: Journal of Business Research. 2007 ; Vol. 60, No. 7. pp. 776-785.
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How ownership and corporate governance influence chief executive pay in China's listed firms. / FIRTH, Michael Arthur; FUNG, M. Y., Peter; RUI, Oliver M.

In: Journal of Business Research, Vol. 60, No. 7, 01.07.2007, p. 776-785.

Research output: Journal PublicationsJournal Article (refereed)

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