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Government Control and Pay Performance Sensitivity of Firm Top Managers |
ZHAO Wei-Bin, CHEN Zhi-Bin |
1. Nanjing University, Nanjing, China; 2. Southeast University, Nanjing, China |
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Abstract This paper catalog the stateowned enterprise to two kinds of corporation, corporation controlled by the central government and controlled by local government according to the new state owned enterprise management system and the institutional background that different level government control different stateowned enterprise. Since the supervision of central and local government varies, the market risk of these two kinds of firms facing differ, and the concerns of pay for top managers in these two kinds of firms are not similar and pay plays different role for these firms. This paper found that pay performance sensitivity is lower for firms controlled by central government compared with those controlled by local government.
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Received: 12 April 2011
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