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Institutional investors, controlling shareholders and CEO pay‐performance relationship: evidence from China

Journal Article


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Abstract


  • 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.

Publication Date


  • 2019

Citation


  • Zhang, D., Ma, S. & Pan, X. (2019). Institutional investors, controlling shareholders and CEO pay‐performance relationship: evidence from China. Accounting and Finance, online first 1-32.

Scopus Eid


  • 2-s2.0-85076307034

Ro Full-text Url


  • https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2670&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1647

Has Global Citation Frequency


Number Of Pages


  • 31

Start Page


  • 1

End Page


  • 32

Volume


  • online first

Place Of Publication


  • Australia

Abstract


  • 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.

Publication Date


  • 2019

Citation


  • Zhang, D., Ma, S. & Pan, X. (2019). Institutional investors, controlling shareholders and CEO pay‐performance relationship: evidence from China. Accounting and Finance, online first 1-32.

Scopus Eid


  • 2-s2.0-85076307034

Ro Full-text Url


  • https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2670&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1647

Has Global Citation Frequency


Number Of Pages


  • 31

Start Page


  • 1

End Page


  • 32

Volume


  • online first

Place Of Publication


  • Australia