The relation between executive compensation and firm performance in Chinese family firms: Moderating role of family management

  • Qi Wang*
  • , Chong Wu
  • , Xu Wang
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The purpose of this paper is to research the impact of family management on the incentive effect of executive compensation in Chinese family firms. This paper examines the relation between executive compensation and corporate performance from perspective of family management using a sample of 231 Chinese family listed companies during the period of 2010-2012. This study indicates that family management has the moderating role on the relation between executive compensation and firm performance. Furthermore, we also find that this role is the entrenchment effect. Therefore this paper indicates that family management is closely related to the incentive effect of executive compensation. These results may support family management explanation for the strength of the incentive effect of executive compensation and provide references for family enterprises to establish a reasonable executive compensation mechanism.

Original languageEnglish
Title of host publicationInternational Conference on Management Science and Engineering - Annual Conference Proceedings
EditorsHua Lan, Yu-Hong Yang
PublisherIEEE Computer Society
Pages971-976
Number of pages6
ISBN (Electronic)9781479953752
DOIs
StatePublished - 17 Oct 2014
Externally publishedYes
Event21th Annual International Conference on Management Science and Engineering, ICMSE 2014 - Helsinki, Finland
Duration: 17 Aug 201419 Aug 2014

Publication series

NameInternational Conference on Management Science and Engineering - Annual Conference Proceedings
ISSN (Print)2155-1847

Conference

Conference21th Annual International Conference on Management Science and Engineering, ICMSE 2014
Country/TerritoryFinland
CityHelsinki
Period17/08/1419/08/14

Keywords

  • Chinese family firm
  • executive compensation
  • family management
  • firm performance

Fingerprint

Dive into the research topics of 'The relation between executive compensation and firm performance in Chinese family firms: Moderating role of family management'. Together they form a unique fingerprint.

Cite this