Relative earnings and firm performance: Evidence from publicly-listed firms in China, 2005–2012
Peiwen Bai and
Wenli Cheng ()
International Review of Economics & Finance, 2020, vol. 66, issue C, 279-290
This paper studies the relationship between three measures of relative earnings and firm performance based on data of 664 listed manufacturing companies in China over the period 2005–2012. It finds that a firm’s financial performance was (1) negatively associated with the capital to labor earnings ratio in the firm; (2) negatively associated with regional average wage relative to the firm’s average wage; and (3) positively associated with the earnings of high-level managers relative to ordinary workers. It also finds that the effects of relative earnings on firm performance differed across regions, industry characteristics and firm ownership structures, and over different time periods.
Keywords: Relative income share of capital and labor; Relative earnings of management and workers; Relative wage; Firm performance in China; Capital share; Wage share; Management pay; Financial performance; Listed companies in China (search for similar items in EconPapers)
JEL-codes: D24 J31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Relative Earnings and Firm Performance: Evidence from Publicly-listed Firms in China, 2005-2012 (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:66:y:2020:i:c:p:279-290
Access Statistics for this article
International Review of Economics & Finance is currently edited by H. Beladi and C. Chen
More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Haili He ().