Executive Compensation, Firm Performance, and Corporate Governance in China: Evidence from Firms Listed in the Shanghai and Shenzhen Stock Exchanges

• Published in: Economic development and cultural change Vol. 54; no. 4; pp. 945 - 983
• Main Authors: Kato, Takao, Long, Cheryl
• Format: Journal Article
• Language: English
• Published: Chicago The University of Chicago Press 01.07.2006; University of Chicago, acting through its Press
• Subjects: Business conditions; Business executives; Business structures; Cash; China; China (People's Republic); Compensation; Corporate governance; Corporations; Correlation analysis; Development studies; Economic change; Economic development; Economic models; Economic reform; Executive compensation; Executives; Financial incentives; Financial performance; Government business enterprises; Government sponsored enterprises; Nationalized industries; Organizational structure; Pay; Private sector; Privatization; Reforms; Shareholder value; Stock exchanges; Stock markets; Studies; Transition economies; Wages & salaries; China

This article provides evidence on how executive compensation relates to firm performance in firms listed in the Shanghai and Shenzhen Stock Exchanges in China. Using comprehensive financial and accounting data on China’s listed firms from 1998 to 2002, augmented by unique data on executive compensat...