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Full-Text Articles in Business
Institutional Investors, Controlling Shareholders And Ceo Pay‐Performance Relationship: Evidence From China, Dan Zhang, Shiguang Ma, Xiaofei Pan
Institutional Investors, Controlling Shareholders And Ceo Pay‐Performance Relationship: Evidence From China, Dan Zhang, Shiguang Ma, Xiaofei Pan
Faculty of Business - Papers (Archive)
Using a large sample of China's listed firms between 2005 and 2015, we find that domestic mutual funds have a positive effect on the CEO pay‐performance relationship, and this effect becomes stronger when their ownership is higher and closer to the controlling shareholder's ownership. This effect is stronger in non‐state‐owned enterprises (non‐SOEs), firms facing weaker industry competition incentives, and firms located in more developed regions. However, Qualified Foreign Institutional Investors (QFIIs) do not have such an influence. Overall, our study contends that the effectiveness of institutional investors' monitoring role is subject to their identity, controlling shareholders and institutional environments.
State Ownership And Earnings Management In Highly-Valued Firms: Evidence From China, Leye Li, Gary S. Monroe, Jing Wang
State Ownership And Earnings Management In Highly-Valued Firms: Evidence From China, Leye Li, Gary S. Monroe, Jing Wang
Faculty of Business - Papers (Archive)
We examine how state ownership affects Chinese firms’ earning management during a period of high valuation. Based on a sample of 19,107 firm-year observations with sufficient data on the China Securities Markets and Accounting Research (CSMAR) database over the period from 2003 to 2017, we find the magnitude of accruals management first increases for up to three years of high valuation, and then reduces after the fourth year. This finding is consistent with the view that the difficulty of consistently using accruals to manage earnings upwards increases over time because of the reversing nature of accruals. We find that managers …