@article{124d9a146b754ac38d82b37330075f76,
title = "How do market forces affect executive compensation in chinese state-owned enterprises?",
abstract = "This paper studies how the evolution of market forces affects executive compensation in China's listed state-owned enterprises (SOEs) from 2000-2007. Along with the progress of market reforms we find that the level of executive compensation increases gradually and the relation between compensation and performance becomes more sensitive. However, the effect of market forces on executive compensation in SOEs is limited by CEOs' political connections. Our findings suggest that introducing exogenous market forces alone may not be sufficient to ensure the effectiveness of governance structure in a transition economy.",
keywords = "China, Executive compensation, Market-oriented reform, Pay-performance sensitivity",
author = "Fang Hu and Weiqiang Tan and Qingquan Xin and Sixian Yang",
note = "Funding Information: We thank the editor, Prof. B.M. Fleisher, and the anonymous reviewer for their insightful comments and suggestions on this paper. The authors also thank Bin Ke, Micheal Firth, Bingxuan Lin, Liping Xu, and the participants at the 2009 American Accounting Association Annual Meeting, 2009 China International Conference in Finance at Guangzhou, seminar at Chongqing University, and Sun Yat-sen University. Hu thanks the Griffith Business School internal research grant of Griffith University . Tan thanks the Faculty Research Grant funding of this research by Hong Kong Baptist University . Xin is grateful for the funding of the National Natural Science Foundation of China (Project nos.: 71232004 , 71272087 and 70802067 ). ",
year = "2013",
month = jun,
doi = "10.1016/j.chieco.2013.03.002",
language = "English",
volume = "25",
pages = "78--87",
journal = "China Economic Review",
issn = "1043-951X",
publisher = "Elsevier B.V.",
number = "1",
}