Top Management Salary, Stock Ratio and Firm Performance: A Comparative Study of State-owned and Private Listed Companies in China

Abstract

Using data collected from 547 state-owned and 95 private companies listed on China's stock market, this study compares the two groups on the relationship of top management salary, its increase and the stock ratio they hold, on one side, and firm performance, on the other side. Results of univariate and regression analysis indicate that there is no significant difference between state-owned and private companies on top management salary and the stock ratio they hold. The increase of top management salary is not related to firm performance. The stock ratio top management hold is not related to the intensity of competition in the industry, and it has no impact on firm performance. Implications and future research directions are also discussed.