Back to Search
Start Over
How does independent directors' reputation influence pay‐for‐performance? Evidence from China.
- Source :
- Accounting & Finance; Mar2022, Vol. 62 Issue 1, p959-1007, 49p, 14 Charts
- Publication Year :
- 2022
-
Abstract
- We examine the impact of independent directors' reputations on executive pay‐performance sensitivity. Using hand‐collected data from listed Chinese companies from 2012 to 2017, we find a positive association between independent directors' reputations and pay‐performance sensitivity that is more pronounced in companies with less concentrated ownership. Further, the results show that reputable directors have a stronger influence on pay‐performance sensitivity when they sit on a remuneration committee, are in state‐owned enterprises, and are in companies with higher agency costs. Our results highlight the monitoring role of reputable independent directors in setting effective executive compensation contracts. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 08105391
- Volume :
- 62
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Accounting & Finance
- Publication Type :
- Academic Journal
- Accession number :
- 155518246
- Full Text :
- https://doi.org/10.1111/acfi.12815