||Executive Ability, Industry Competition and Executive Pay: An Empirical Analysis of Chinese Listed Companies
FANG, Fang ,
GAO, MinghuaSEMBA, Hu Dan
28 , 2016-02-29 , 名古屋大学大学院経済学研究科
This paper investigates the relationship between executives' ability and executives' compensation based on data concerning Chinese listed companies. We found that executives with higher ability can obtain a higher salary, which partly validates the manager market in China. Further analysis suggests that this correlation exists only in competitive industries and that there is a significant difference in executive pay decision mechanisms between monopoly and competitive industries. This paper enriches studies on determinants of executive pay, and the findings have policy implications for relevant regulators.