Date: 28 Apr 2013
Informativeness of performance measures and Chinese executive compensation
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We provide evidence on the use of accounting versus stock market performance measures as determinants of Chinese top managers’ compensation over 2001–2007. We theorize and find that (1) accounting returns are weighted more heavily in general than stock returns in determining top executive compensation, (2) state-owned enterprises (SOEs) rely significantly less on stock market returns than do non-SOEs, (3) firms located in high marketization regions rely more heavily on stock market returns to reward managers, and (4) firms with better internal governance quality rely more on stock returns to reward executives. We discuss our findings with particular reference to the Chinese context of our research.
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- Informativeness of performance measures and Chinese executive compensation
Asia Pacific Journal of Management
Volume 30, Issue 4 , pp 1031-1058
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Executive compensation
- Performance measures
- Corporate governance
- Industry Sectors
- Author Affiliations
- 1. School of Business Administration & Economics, College at Brockport, State University of New York, Brockport, NY, 14420, USA
- 2. Lancaster Management School, Lancaster University, Lancaster, UK
- 3. Rajiv Gandhi Indian Institute of Management, Nongthymmai, Shillong, 793 014, India