CEO incentive contracts in China: why does city location matter?
CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract foreign...
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| Format: | Book Section |
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Emerald
2014
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| Online Access: | https://eprints.nottingham.ac.uk/29854/ |
| _version_ | 1848793865648078848 |
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| author | Bryson, Alex Forth, John Zhou, Minghai |
| author2 | Ortega, Jaime |
| author_facet | Ortega, Jaime Bryson, Alex Forth, John Zhou, Minghai |
| author_sort | Bryson, Alex |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract foreign direct investment (FDI), and the privatization of state owned enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm's own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China. |
| first_indexed | 2025-11-14T19:07:05Z |
| format | Book Section |
| id | nottingham-29854 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:07:05Z |
| publishDate | 2014 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-298542020-05-04T16:57:20Z https://eprints.nottingham.ac.uk/29854/ CEO incentive contracts in China: why does city location matter? Bryson, Alex Forth, John Zhou, Minghai CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract foreign direct investment (FDI), and the privatization of state owned enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm's own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China. Emerald Ortega, Jaime 2014-11-17 Book Section PeerReviewed Bryson, Alex, Forth, John and Zhou, Minghai (2014) CEO incentive contracts in China: why does city location matter? In: International perspectives on participation. Advances in the economic analysis of participatory and labor-managed firms (15). Emerald, Bingley, pp. 25-49. ISBN 9781784411695 Executive compensation CEOs Privatisation FDI China Cities http://www.emeraldinsight.com/doi/abs/10.1108/S0885-333920140000015009 doi:10.1108/S0885-333920140000015009 doi:10.1108/S0885-333920140000015009 |
| spellingShingle | Executive compensation CEOs Privatisation FDI China Cities Bryson, Alex Forth, John Zhou, Minghai CEO incentive contracts in China: why does city location matter? |
| title | CEO incentive contracts in China: why does city location matter? |
| title_full | CEO incentive contracts in China: why does city location matter? |
| title_fullStr | CEO incentive contracts in China: why does city location matter? |
| title_full_unstemmed | CEO incentive contracts in China: why does city location matter? |
| title_short | CEO incentive contracts in China: why does city location matter? |
| title_sort | ceo incentive contracts in china: why does city location matter? |
| topic | Executive compensation CEOs Privatisation FDI China Cities |
| url | https://eprints.nottingham.ac.uk/29854/ https://eprints.nottingham.ac.uk/29854/ https://eprints.nottingham.ac.uk/29854/ |