Top Management Team Power in China: Measurement and Validation

Autor:	Luo Zuo, Bin Wang, Bin Ke, Xinshu Mao
Rok vydání:	2021
Předmět:	Measure (data warehouse) 050208 finance Executive compensation Operations research Computer science Strategy and Management 0502 economics and business 05 social sciences Top management 050201 accounting Management Science and Operations Research China Power (physics)
Zdroj:	Management Science. 67:6602-6627
ISSN:	1526-5501 0025-1909
DOI:	10.1287/mnsc.2020.3798
Popis:	We propose and validate a comprehensive measure of power for the top management teams (TMTs) of publicly listed Chinese firms. We show that our measure is positively associated with the four power dimensions developed by prior research for U.S. firms as well as three Asia-relevant power dimensions, including political capital, seniority, and gender. We find that our TMT power measure is a valid proxy for TMT power for both state-controlled firms and non-state-controlled firms. We also compare our TMT power measure with one alternative TMT power proxy based on executive compensation and find no evidence that the alternative proxy is better than our measure in capturing TMT’s true power. Further, we provide evidence that the divergence between our power proxy and the power proxy based on executive compensation reflects nonmarket institutional forces in China and has important implications for corporate outcomes. This paper was accepted by Brian Bushee, accounting.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::0e1c4728c4389889f185235fb5a41747 https://doi.org/10.1287/mnsc.2020.3798 Zobrazit plný text záznamu