We examine the relationships with firm performance of the internal pay gap among individual members of the top management team(TMT) and the compensation level of TMT members relative to their industry peers. We find t...We examine the relationships with firm performance of the internal pay gap among individual members of the top management team(TMT) and the compensation level of TMT members relative to their industry peers. We find that pay gap is positively related to firm performance and that this positive relation is stronger when the TMT pay level is higher than the industry median. However, we do not observe such effects in Chinese state-owned enterprises(SOEs),in which both the executive managerial market and compensation are government-regulated. We also document that cutting central SOE managers' pay level can increase firm value, whereas doing so for local SOE managers has the opposite effect. Our findings have important implications for research on TMT compensation as well as for policy makers considering SOE compensation reform.展开更多
1.Why carry out accounting research in the banking industry?1.1.Why focus on the banking industry?The banking industry is critically important to national and global economies.Banks are vital to the operation of a cou...1.Why carry out accounting research in the banking industry?1.1.Why focus on the banking industry?The banking industry is critically important to national and global economies.Banks are vital to the operation of a country’s domestic economy in their role as depository institutions and lenders to both corporations and individuals.For example,Fields et al.(2004)estimate that banks represent over twenty percent of the total public equity market capitalization in the United States.展开更多
基金support of the National Natural Science Foundation of China (71372150, 71572197, and 71032006)
文摘We examine the relationships with firm performance of the internal pay gap among individual members of the top management team(TMT) and the compensation level of TMT members relative to their industry peers. We find that pay gap is positively related to firm performance and that this positive relation is stronger when the TMT pay level is higher than the industry median. However, we do not observe such effects in Chinese state-owned enterprises(SOEs),in which both the executive managerial market and compensation are government-regulated. We also document that cutting central SOE managers' pay level can increase firm value, whereas doing so for local SOE managers has the opposite effect. Our findings have important implications for research on TMT compensation as well as for policy makers considering SOE compensation reform.
文摘1.Why carry out accounting research in the banking industry?1.1.Why focus on the banking industry?The banking industry is critically important to national and global economies.Banks are vital to the operation of a country’s domestic economy in their role as depository institutions and lenders to both corporations and individuals.For example,Fields et al.(2004)estimate that banks represent over twenty percent of the total public equity market capitalization in the United States.
