Informativeness of performance measures and Chinese executive compensation

James Cordeiro (), Lerong He (), Martin Conyon and Tara Shaw ()

Asia Pacific Journal of Management, 2013, vol. 30, issue 4, 1058 pages

Abstract: 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. Copyright Springer Science+Business Media New York 2013

Keywords: Executive compensation; Performance measures; China; Corporate governance; Marketization; Institutions (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (16)

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DOI: 10.1007/s10490-013-9353-9

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