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Article
Family ownership, corporate governance, and top executive compensation
Managerial and Decision Economics
  • Lai Sheung, Suwina CHENG, University of Bath, UK
  • Michael FIRTH, The Hong Kong Polytechnic University
Document Type
Journal article
Publication Date
1-1-2006
Publisher
John Wiley & Sons, Ltd.
Disciplines
Abstract
In this study we investigate how top management pay is determined in a family firm environment where even listed firms are effectively controlled by a single individual or a single family. Using data from Hong Kong, we find that executive directors' pay is reduced if the directors have substantial stockholdings. Moreover, pay is related to profits but not to stock returns. Our results are consistent with external blockholders and independent non-executive directors persuading firms to base top management compensation on a firm's profitability.
DOI
10.1002/mde.1273
E-ISSN
10991468
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Copyright © 2013 Inderscinece Enterprises Ltd.

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Citation Information
Cheng, S., & Firth, M. (2006). Family ownership, corporate governance, and top executive compensation. Managerial and Decision Economics, 27(7), 549–561. doi: 10.1002/mde.1273