FAMILY TIES AND ORGANIZATIONAL DESIGN: EVIDENCE FROM CHINESE PRIVATE FIRMS

• 成果类型: Article
• 署名作者: Cai, Hongbin; Li, Hongbin; Park, Albert; Zhou, Li-An
• 署名单位: Peking University; Tsinghua University; Hong Kong University of Science & Technology
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00268
• 发表日期: 2013-07
• 页码: 850-867
• 关键词: ownership; performance

摘要

Analyzing data from a unique survey of managers of Chinese private firms, we investigate how family ties with firm heads affect managerial compensation and job assignment. We find that family managers earn higher salaries and receive more bonuses, hold higher positions, and are given more decision rights and job responsibilities than nonfamily managers in the same firm. However, family managers face weaker incentives than professional managers, as seen in the lower sensitivity of their bonuses to firm performance. Our findings are consistent with the predictions of a principal-agent model that incorporates family trust and endogenous job assignment decisions.