 Board of director compensation in China: It pays to be connectedZonghao Chen, Michael O'Connor Keefe and Jameson K.M. Watts Pacific-Basin Finance Journal, 2020, vol. 63, issue C Abstract: We investigate the influence of board of director networks (network prominence) on the career outcomes of directors of Chinese public firms from 2005 to 2014. We find that higher network prominence leads to increased compensation for independent and executive directors. Network prominence increases turnover for independent directors, which facilitates access to better ex- ternal opportunities, whereas network prominence reduces turnover for directors with positions in controlling firms, which protects these related directors from dismissal. Network prominence also leads to additional future directorships, but for non-independent non-executive directors, this effect only holds for related directors who hold positions in controlling firms. These findings are consistent with related directors acting in the interest of the controlling firm. Overall, higher network prominence both directly leads to higher compensation and indirectly leads to higher compensation through the channels of labor mobility and additional board seats. Keywords: Board networks; Director compensation; Director turnover (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:63:y:2020:i:c:s0927538x20301025 DOI: 10.1016/j.pacfin.2020.101394 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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