Determinants of excessive executive compensation
This study examines determinants of excessive executive compensation in PRC firms using 8,100 firm-year observations from 2003-2009. Employing an industry benchmarked excessive pay proxy, this study finds that CEO duality and ownership dispersion have significant positive associations with the proba...
| Main Authors: | , , |
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| Format: | Journal Article |
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Virtus Interpress
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/19721 |
| _version_ | 1848750111154241536 |
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| author | Cong, Lingmei Wang, Q. Evans, John |
| author_facet | Cong, Lingmei Wang, Q. Evans, John |
| author_sort | Cong, Lingmei |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines determinants of excessive executive compensation in PRC firms using 8,100 firm-year observations from 2003-2009. Employing an industry benchmarked excessive pay proxy, this study finds that CEO duality and ownership dispersion have significant positive associations with the probability of overpaying the executives. The presence of a large outside shareholder is negatively associated with the likelihood of excessive executive compensation. Results from this study have important implications for various stakeholders. For example, the PRC authorities need to further strengthen the corporate governance and constrain the power of management over the pay-setting process. More institutional investors could be encouraged to enter the PRC market to play a bigger role in monitoring managers. This paper makes an original contribution to the PRC executive compensation literature by providing unique insights into drivers of excessive executive compensation. |
| first_indexed | 2025-11-14T07:31:38Z |
| format | Journal Article |
| id | curtin-20.500.11937-19721 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:31:38Z |
| publishDate | 2012 |
| publisher | Virtus Interpress |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-197212017-02-28T01:35:09Z Determinants of excessive executive compensation Cong, Lingmei Wang, Q. Evans, John Determinants PRC Excessive Executive Compensation This study examines determinants of excessive executive compensation in PRC firms using 8,100 firm-year observations from 2003-2009. Employing an industry benchmarked excessive pay proxy, this study finds that CEO duality and ownership dispersion have significant positive associations with the probability of overpaying the executives. The presence of a large outside shareholder is negatively associated with the likelihood of excessive executive compensation. Results from this study have important implications for various stakeholders. For example, the PRC authorities need to further strengthen the corporate governance and constrain the power of management over the pay-setting process. More institutional investors could be encouraged to enter the PRC market to play a bigger role in monitoring managers. This paper makes an original contribution to the PRC executive compensation literature by providing unique insights into drivers of excessive executive compensation. 2012 Journal Article http://hdl.handle.net/20.500.11937/19721 Virtus Interpress restricted |
| spellingShingle | Determinants PRC Excessive Executive Compensation Cong, Lingmei Wang, Q. Evans, John Determinants of excessive executive compensation |
| title | Determinants of excessive executive compensation |
| title_full | Determinants of excessive executive compensation |
| title_fullStr | Determinants of excessive executive compensation |
| title_full_unstemmed | Determinants of excessive executive compensation |
| title_short | Determinants of excessive executive compensation |
| title_sort | determinants of excessive executive compensation |
| topic | Determinants PRC Excessive Executive Compensation |
| url | http://hdl.handle.net/20.500.11937/19721 |