Open Journal of Business and Management

Volume 5, Issue 4 (October 2017)

ISSN Print: 2329-3284   ISSN Online: 2329-3292

Google-based Impact Factor: 1.13  Citations  

The Impact of Directors with Foreign Experience on Executive Compensation: Evidence from Chinese Listed Companies

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DOI: 10.4236/ojbm.2017.54055    890 Downloads   2,701 Views  
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ABSTRACT

We study the impact of directors with foreign experience on executive Compensation. Using a data set from Chinese listed companies, we find out that executive compensation tends to be higher in companies with directors that have foreign experience. To evaluate this change in executive compensation, we further explore the impact of director with oversea background on pay performance link in these companies, which is an indicator of corporate governance and compensation management. Result shows that the impact of directors with foreign experience depends on the equity nature of the company.

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Xiao, R. (2017) The Impact of Directors with Foreign Experience on Executive Compensation: Evidence from Chinese Listed Companies. Open Journal of Business and Management, 5, 653-670. doi: 10.4236/ojbm.2017.54055.

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