Top Management Team Power in China: Measurement and Validation

• 成果类型: Article
• 署名作者: Ke, Bin; Mao, Xinshu; Wang, Bin; Zuo, Luo
• 署名单位: National University of Singapore; Beijing Technology & Business University; Beijing Technology & Business University; Cornell University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2020.3798
• 发表日期: 2021
• 页码: 6602-6627
• 关键词: POWER; TOP MANAGEMENT TEAM; Executive compensation; nonmarket institutional force; CHINA

摘要

We propose and validate a comprehensive measure of power for the top management teams (TMTs) of publicly listed Chinese firms. We show that our measure is positively associated with the four power dimensions developed by prior research for U.S. firms as well as three Asia-relevant power dimensions, including political capital, seniority, and gender. We find that our TMT power measure is a valid proxy for TMT power for both state-controlled firms and non-state-controlled firms. We also compare our TMT power measure with one alternative TMT power proxy based on executive compensation and find no evidence that the alternative proxy is better than our measure in capturing TMT's true power. Further, we provide evidence that the divergence between our power proxy and the power proxy based on executive compensation reflects non market institutional forces in China and has important implications for corporate outcomes.