Asia Pacific Journal of Management

, Volume 30, Issue 4, pp 1031–1058 | Cite as

Informativeness of performance measures and Chinese executive compensation

  • James J. Cordeiro
  • Lerong He
  • Martin Conyon
  • Tara Shankar Shaw


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.


Executive compensation Performance measures China Corporate governance Marketization Institutions 


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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • James J. Cordeiro
    • 1
  • Lerong He
    • 1
  • Martin Conyon
    • 2
  • Tara Shankar Shaw
    • 3
  1. 1.School of Business Administration & Economics, College at BrockportState University of New YorkBrockportUSA
  2. 2.Lancaster Management SchoolLancaster UniversityLancasterUK
  3. 3.Rajiv Gandhi Indian Institute of ManagementShillongIndia

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