West meets east: Understanding managerial incentives in Chinese SOEs
Author(s)
Xin, Qingquan
Bao, Anze
Hu, Fang
Griffith University Author(s)
Year published
2019
Metadata
Show full item recordAbstract
State-owned enterprises (SOE) are essentially extensions of the government and are therefore responsible for multi-task objectives. The incentive system for SOE managers consists of both monetary compensation and promotion within the bureaucratic system. Political promotion is key to understanding the incentives of SOE managers. In the reform and opening up era, SOEs have been reformed and exposed to political and market forces. The design of incentive systems for SOE managers has thus become complicated and challenging. Our study provides important implications for this key issue of SOE reform.State-owned enterprises (SOE) are essentially extensions of the government and are therefore responsible for multi-task objectives. The incentive system for SOE managers consists of both monetary compensation and promotion within the bureaucratic system. Political promotion is key to understanding the incentives of SOE managers. In the reform and opening up era, SOEs have been reformed and exposed to political and market forces. The design of incentive systems for SOE managers has thus become complicated and challenging. Our study provides important implications for this key issue of SOE reform.
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Journal Title
CHINA JOURNAL OF ACCOUNTING RESEARCH
Volume
12
Issue
2
Subject
Accounting, auditing and accountability