Ownership, corporate governance and top management pay in Hong Kong

Lai Sheung, Suwina CHENG, Michael FIRTH

Research output: Journal PublicationsJournal Article (refereed)

42 Citations (Scopus)

Abstract

Top management pay has been the focus of intense scrutiny and debate in many countries. Important issues include how compensation is decided and whether it is a function of performance. The purpose of this study is to examine top management pay in Hong Kong and to investigate how it is affected by firms’ ownership and governance characteristics. A distinguishing characteristic of many listed firms in Hong Kong is the large proportion of share capital owned by the directors, and we argue that this moderates top management pay. We also investigate the role of institutional ownership and board composition in the determination of pay. We find that director and institutional ownership moderate compensation but that there is little evidence that they encourage pay-for-performance reward schemes.
Original languageEnglish
Pages (from-to)291-302
Number of pages12
JournalCorporate Governance: An International Review
Volume13
Issue number2
DOIs
Publication statusPublished - 1 Mar 2005
Externally publishedYes

Fingerprint

Chemical analysis
Ownership
Hong Kong
Corporate governance
Top management
Institutional ownership
Compensation and Redress
Firm ownership
Proportion
Governance
Reward
Board composition
Pay-for-performance

Keywords

  • Ownership; corporate governance; executive compensation

Cite this

CHENG, Lai Sheung, Suwina ; FIRTH, Michael. / Ownership, corporate governance and top management pay in Hong Kong. In: Corporate Governance: An International Review. 2005 ; Vol. 13, No. 2. pp. 291-302.
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Ownership, corporate governance and top management pay in Hong Kong. / CHENG, Lai Sheung, Suwina; FIRTH, Michael.

In: Corporate Governance: An International Review, Vol. 13, No. 2, 01.03.2005, p. 291-302.

Research output: Journal PublicationsJournal Article (refereed)

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