How Do Independent Directors View CEO Pay Disparity in China?
Given the vital role of independent directors in determination of executives’ compensation, we explore how independent directors view the CEO pay disparity. Using the data of all companies listed on the Shenzhen and Shanghai stock exchanges for the period 2005 to 2015, we find that the proportion...
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Johar Education Society
2019-03-01
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| Series: | Pakistan Journal of Commerce and Social Sciences |
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| Online Access: | http://www.jespk.net/publications/4329.pdf |
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doaj-064c624c896b4c94860c231a000242182020-11-25T04:03:14ZengJohar Education SocietyPakistan Journal of Commerce and Social Sciences1997-85532309-86192019-03-0113195103How Do Independent Directors View CEO Pay Disparity in China? Shagufta Jafar 0Muhammad Usman 1Department of Accounting and Finance, School of Management, Xi’an Jiaotong University, Xi’an, P.R. ChinaDivision of Computational Mathematics and Engineering, Institute for Computational Science, Ton Duc Thang University, Ho Chi Minh City, Vietnam; Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City, VietnamGiven the vital role of independent directors in determination of executives’ compensation, we explore how independent directors view the CEO pay disparity. Using the data of all companies listed on the Shenzhen and Shanghai stock exchanges for the period 2005 to 2015, we find that the proportion of independent directors on the board is negatively associated with the extent to which executives’ pay is dispersed. This finding suggests that independent directors view the dispersion of the CEO’s and other executive directors’ pay from the managerial power theory perspective rather than from the tournament theory.http://www.jespk.net/publications/4329.pdfceo pay disparityceo tenurechinaindependent directorsmanagerial powerand state owned firmstournament incentives |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Shagufta Jafar Muhammad Usman |
| spellingShingle |
Shagufta Jafar Muhammad Usman How Do Independent Directors View CEO Pay Disparity in China? Pakistan Journal of Commerce and Social Sciences ceo pay disparity ceo tenure china independent directors managerial power and state owned firms tournament incentives |
| author_facet |
Shagufta Jafar Muhammad Usman |
| author_sort |
Shagufta Jafar |
| title |
How Do Independent Directors View CEO Pay Disparity in China? |
| title_short |
How Do Independent Directors View CEO Pay Disparity in China? |
| title_full |
How Do Independent Directors View CEO Pay Disparity in China? |
| title_fullStr |
How Do Independent Directors View CEO Pay Disparity in China? |
| title_full_unstemmed |
How Do Independent Directors View CEO Pay Disparity in China? |
| title_sort |
how do independent directors view ceo pay disparity in china? |
| publisher |
Johar Education Society |
| series |
Pakistan Journal of Commerce and Social Sciences |
| issn |
1997-8553 2309-8619 |
| publishDate |
2019-03-01 |
| description |
Given the vital role of independent directors in determination of executives’
compensation, we explore how independent directors view the CEO pay disparity. Using
the data of all companies listed on the Shenzhen and Shanghai stock exchanges for the
period 2005 to 2015, we find that the proportion of independent directors on the board is
negatively associated with the extent to which executives’ pay is dispersed. This finding
suggests that independent directors view the dispersion of the CEO’s and other executive
directors’ pay from the managerial power theory perspective rather than from the
tournament theory. |
| topic |
ceo pay disparity ceo tenure china independent directors managerial power and state owned firms tournament incentives |
| url |
http://www.jespk.net/publications/4329.pdf |
| work_keys_str_mv |
AT shaguftajafar howdoindependentdirectorsviewceopaydisparityinchina AT muhammadusman howdoindependentdirectorsviewceopaydisparityinchina |
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1724441062736396288 |