Executive Compensation in Emerging Markets: Theoretical Developments and Empirical Evidence

Yongli Luo

Chapter 18 in Corporate Governance and Corporate Social Responsibility:Emerging Markets Focus, 2014, pp 499-529 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter investigates the theoretical frameworks and recent empirical evidence of executive compensation in emerging markets. The author outlines theoretical evolutions and identifies unique aspects of institutional features in determining the pay scheme in emerging markets. Due to family ownership and political influence within state-owned enterprises (SOEs) in emerging economies, the agency-based bargaining takes place in firms with strong governance while entrenchment-based skimming takes place in firms with weak governance, and this could lead to a relation-based rather than a market-based compensation contract. The literature seems to be heading into the direction of considering executive pay as an outcome of pay setting practices, embedded in socially constructed corporate governance arrangements. The author highlights the importance of executive compensation studies in emerging economies and calls for future research by integrating the institutional features of emerging markets into investigations of the various pay practices across different jurisdictions.

Keywords: Corporate Governance; Corporate Social Responsibility; Ethics; Emerging Markets (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814520386_0018 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814520386_0018 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789814520386_0018

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().