Executive remuneration, corporate governance and corporate performance: Evidence from China

This study investigates the impact of corporate performance and governance on executive remuneration in a Chinese market setting. Using Generalized Method Moments (GMM) estimation approach for sample 860 non-financial firms listed Stock Exchanges over 15 years period 2004–2018, found positive significant association between profitability pay. The further reports that ownership concentration is positively related to pay revealing an entrenchment effect i.e., collusion large shareholders top management. Consistent with managerial power agency theory CEO duality exhibits relationship remuneration, while board size independence also reveal pay, indicating ineffectiveness reducing entrenchment. Interestingly, non-state-owned enterprises report negative which means larger tend reduce because they may have better control monitoring. Following propositions, weakens sensitivity but contrary this contrast performance, making independent director's role ambiguous.