Can pay‐performance sensitivity cure zombie firms? Evidence from China

Yumeng Wu and Haiying Pan

Managerial and Decision Economics, 2022, vol. 43, issue 4, 1080-1090

Abstract: The proper disposal of zombie firms is the key to supply‐side structural reform. Based on data of A‐share markets from 2009 to 2018, this study explores the impact of pay‐performance sensitivity (PPS) of executives on curing zombie firms. The findings show that PPS has a significant effect on curing zombie firms, and the innovation performance plays a partially mediating role between PPS and cured zombie firms. Further analysis shows that the above effects are heterogeneous, demonstrating that the effects of PPS on curing zombie firms are more pronounced for technology‐intensive industrial firms and non‐state‐owned firms.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3439

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:wly:mgtdec:v:43:y:2022:i:4:p:1080-1090

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().