Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises

© 2020 Elsevier B.V. This paper explores the effect of policy burdens of China's state-owned enterprises (SOEs) on senior executives’ excessive perks. The empirical analysis demonstrates that SOE policy burdens are significantly and positively correlated with senior executives’ excessive pe...

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Main Authors: Jian, J., Li, H., Meng, Leah, Zhao, C.
Format: Journal Article
Language:English
Published: ELSEVIER 2020
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/80725
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author Jian, J.
Li, H.
Meng, Leah
Zhao, C.
author_facet Jian, J.
Li, H.
Meng, Leah
Zhao, C.
author_sort Jian, J.
building Curtin Institutional Repository
collection Online Access
description © 2020 Elsevier B.V. This paper explores the effect of policy burdens of China's state-owned enterprises (SOEs) on senior executives’ excessive perks. The empirical analysis demonstrates that SOE policy burdens are significantly and positively correlated with senior executives’ excessive perks, indicating that SOE policy burdens increase agency cost. The results hold after controlling for potential endogeneity. Moreover, we find the following evidences. Strategic policy burdens of SOEs have a significantly greater impact on their senior executives’ excessive perks, compared with social policy burdens. The positive impact of SOE policy burdens on excessive perks is significantly weaker in east China due to the higher degree of marketization. The central government's stricter supervision can also alleviate the positive correlation between policy burdens of centrally administered SOEs and senior executives’ excessive perks.
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spelling curtin-20.500.11937-807252021-01-05T04:05:29Z Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises Jian, J. Li, H. Meng, Leah Zhao, C. Social Sciences Economics Business & Economics Policy burdens Excessive perks SOEs Marketization CORPORATE GOVERNANCE POLITICAL CONNECTIONS FIRM PERFORMANCE AGENCY PROBLEMS OWNERSHIP GOVERNMENT MARKET COSTS INCENTIVES ECONOMICS © 2020 Elsevier B.V. This paper explores the effect of policy burdens of China's state-owned enterprises (SOEs) on senior executives’ excessive perks. The empirical analysis demonstrates that SOE policy burdens are significantly and positively correlated with senior executives’ excessive perks, indicating that SOE policy burdens increase agency cost. The results hold after controlling for potential endogeneity. Moreover, we find the following evidences. Strategic policy burdens of SOEs have a significantly greater impact on their senior executives’ excessive perks, compared with social policy burdens. The positive impact of SOE policy burdens on excessive perks is significantly weaker in east China due to the higher degree of marketization. The central government's stricter supervision can also alleviate the positive correlation between policy burdens of centrally administered SOEs and senior executives’ excessive perks. 2020 Journal Article http://hdl.handle.net/20.500.11937/80725 10.1016/j.econmod.2020.05.002 English ELSEVIER restricted
spellingShingle Social Sciences
Economics
Business & Economics
Policy burdens
Excessive perks
SOEs
Marketization
CORPORATE GOVERNANCE
POLITICAL CONNECTIONS
FIRM PERFORMANCE
AGENCY PROBLEMS
OWNERSHIP
GOVERNMENT
MARKET
COSTS
INCENTIVES
ECONOMICS
Jian, J.
Li, H.
Meng, Leah
Zhao, C.
Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title_full Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title_fullStr Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title_full_unstemmed Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title_short Do policy burdens induce excessive managerial perks? Evidence from China's stated-owned enterprises
title_sort do policy burdens induce excessive managerial perks? evidence from china's stated-owned enterprises
topic Social Sciences
Economics
Business & Economics
Policy burdens
Excessive perks
SOEs
Marketization
CORPORATE GOVERNANCE
POLITICAL CONNECTIONS
FIRM PERFORMANCE
AGENCY PROBLEMS
OWNERSHIP
GOVERNMENT
MARKET
COSTS
INCENTIVES
ECONOMICS
url http://hdl.handle.net/20.500.11937/80725