Publication Type
Journal Article
Version
publishedVersion
Publication Date
9-2013
Abstract
We analyze 228 executive compensation contracts voluntarily disclosed by Chinese listed firms and find that central-government-controlled companies disclose more information in executive compensation contracts than local-government-controlled and non-government-controlled companies. Cash-based payments are the main form of executive compensation, whereas equity-based payments are seldom used by Chinese listed companies. On average, there are no significant differences in the value of basic salaries and performance-based compensation in executive compensation contracts. But, compared with their counterparts in non-government-controlled companies, executives in government-controlled companies are given more incentive compensation. Accounting earnings are typically used in executive compensation contracts, with few firms using stock returns to evaluate their executives. However, the use of non-financial measures has increased significantly since 2007.
Keywords
Executive compensation, Voluntary disclosure, Incentives, Performance measures
Discipline
Accounting | Asian Studies | Corporate Finance
Research Areas
Corporate Reporting and Disclosure
Publication
China Journal of Accounting Research
Volume
6
Issue
3
First Page
211
Last Page
231
ISSN
1755-3091
Identifier
10.1016/j.cjar.2013.06.001
Publisher
Elsevier
Citation
LI, Yubo; LOU, Fang; WANG, Jiwei; and YUAN, Hongqi.
A Survey of Executive Compensation Contracts in China’s Listed Companies. (2013). China Journal of Accounting Research. 6, (3), 211-231.
Available at: https://ink.library.smu.edu.sg/soa_research/1232
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.cjar.2013.06.001
Included in
Accounting Commons, Asian Studies Commons, Corporate Finance Commons