Corporate Governance and CEO Compensation in China
37 Pages Posted: 29 Jan 2003
Date Written: September 2002
This paper contributes to the international corporate governance literature by examining factors that affect CEO compensation in China. In particular, we develop models of CEO pay based on an understanding of the unique economic and structural reforms undertaken by the partially privatized state owned Enterprises (SOEs). We find that corporate governance factors have a significant impact on CEO compensation but they do so in ways that differ from those in other countries. Our conclusions are robust across different formulations of the basic model and they have public policy implications for China and other transitional economies that are moving away from state ownership of business enterprises.
Keywords: Compensation, SOEs
JEL Classification: G3, P2
Suggested Citation: Suggested Citation