POLITICALLY CONNECTED BOARDS AND TOP EXECUTIVE PAY IN CHINESE LISTED FIRMS

• 成果类型: Article
• 署名作者: Chizema, Amon; Liu, Xiaohui; Lu, Jiangyong; Gao, Lan
• 署名单位: Loughborough University; Peking University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2253
• 发表日期: 2015
• 页码: 890-906
• 关键词: top executive pay; politically connected directors; CHINA; social comparison theory; corporate governance

摘要

Drawing on social comparison theory, this study examines the relationship between politically connected boards and top executive pay. Moreover, given the socialist orientation of China, tests are also carried out to establish the relationship between politically connected directors and pay dispersion across the firm. We find a negative association between politically connected boards and top executive pay. We also find that politically connected boards are negatively associated with pay dispersion, i.e., the higher the number of political directors on the board the smaller the gap between top executive pay and average employee pay. Finally, our study shows that politically connected directors weaken the pay-performance link. These findings have important theoretical, policy, and managerial implications. Copyright (c) 2014 John Wiley & Sons, Ltd.