Chi, Wei and Zhang, Haiyan (2008): Are Stronger Executive Incentives Associated with Cross-listing? Evidence from China.
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This study examines whether firms incorporated in mainland China benefit from cross-listing in Hong Kong, China. The Hong Kong Stock Market has more stringent rules regarding corporate governance and a better system of investor protection than the mainland market. Hong Kong companies generally provide strong incentives to executives via equity-based compensation. Have cross-listed companies learned from Hong Kong firms about adopting these strong executive incentives? The evidence from this study suggests that changes in top executive compensation are more sensitive to sales growth in cross-listed firms than they are in mainland firms without cross-listing. However, compared to Hong Kong firms, cross-listed firms are less sensitive to stock returns. Further, this study shows that it is necessary to differentiate between state-owned companies and private companies, as cross-listing may have a greater impact on executive incentives in state-owned companies than it does in private companies.
|Item Type:||MPRA Paper|
|Original Title:||Are Stronger Executive Incentives Associated with Cross-listing? Evidence from China|
|Keywords:||Cross-listing;Executive Compensation;Corporate Governance|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages; Payment Methods
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects
|Depositing User:||Wei Chi|
|Date Deposited:||12. Dec 2009 07:06|
|Last Modified:||19. Feb 2013 00:06|
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Is Cross-listing Associated with Stronger Executive Incentives? Evidence from China. (deposited 21. Nov 2008 04:47)
- Are Stronger Executive Incentives Associated with Cross-listing? Evidence from China. (deposited 12. Dec 2009 07:06) [Currently Displayed]