Profit-Sharing and Financial Performance in the Chinese State Enterprises: Evidence from Panel Data

Juzhong Zhuang () and Chenggang Xu

Economic Change and Restructuring, 1996, vol. 29, issue 3, 205-22

Abstract: This paper examines the effects of incentives in employee remuneration on financial performance in a sample of Chinese state-owned enterprises (SOEs) during the late 1980s and early 1990s. The estimates show that bonus payments as a form of pofit-sharing between employees and the state have positive effects on both the total factor productivity and profitability of the sample SOEs. Moreover, the actual level of bonus payments is found to be lower than the optimal level which a competitive firm would set to maximise profits. These results suggest that profit-sharing introduced in Chinese state-owned enterprises as one of the centrepieces of economic reforms over the last decade has been effective. Copyright 1996 by Kluwer Academic Publishers

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (19)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:29:y:1996:i:3:p:205-22

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().