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CEO gender, executive compensation and firm performance in Chinese‐listed enterprises

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  • Lam, Kevin C.K.
  • McGuinness, Paul B.
  • Vieito, João Paulo

Abstract

The present study extends the international body of evidence on executive compensation by offering a novel account of the interaction of CEO gender with executive remuneration and firm performance in the Chinese market place. Examination of more than 10,000 firm-year observations, spanning the period 2000–2008, points to women making up around 4.4% of all CEOs in China's listed issuers. More tellingly, female CEO participation is on the rise and is considerably more visible in firms with private control. This result is consistent with Becker's (1957) proposition that competitive forces lessen discriminatory pressures. We surmise that the Chinese authorities’ attempts to promote gender-neutral hiring policies now appear subordinate to forces unleashed by China's burgeoning private sector. Female CEOs are also more likely to emerge in firms where at least one female director is present. However, the presence of international cross-listings does not materially raise CEO compensation or the likelihood of the CEO being female. In keeping with international norms, female CEOs receive less favourable compensation terms than their male counterparts. Finally, we find only limited evidence of a CEO gender–firm performance link.

Suggested Citation

  • Lam, Kevin C.K. & McGuinness, Paul B. & Vieito, João Paulo, 2013. "CEO gender, executive compensation and firm performance in Chinese‐listed enterprises," Pacific-Basin Finance Journal, Elsevier, vol. 21(1), pages 1136-1159.
  • Handle: RePEc:eee:pacfin:v:21:y:2013:i:1:p:1136-1159
    DOI: 10.1016/j.pacfin.2012.08.006
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    Cited by:

    1. Pham, Nga & Oh, K.B. & Pech, Richard, 2015. "Mergers and acquisitions: CEO duality, operating performance and stock returns in Vietnam," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 298-316.
    2. Yu, Mei & Ashton, John K., 2015. "Board leadership structure for Chinese public listed companies," China Economic Review, Elsevier, vol. 34(C), pages 236-248.
    3. Paul McGuinness & Kevin Lam & João Vieito, 2015. "Gender and other major board characteristics in China: Explaining corporate dividend policy and governance," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 989-1038, December.
    4. Mohan, Nancy, 2014. "A review of the gender effect on pay, corporate performance and entry into top management," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 41-51.
    5. Low, Daniel C.M. & Roberts, Helen & Whiting, Rosalind H., 2015. "Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 381-401.
    6. Duong, Lien & Evans, John, 2016. "Gender differences in compensation and earnings management: Evidence from Australian CFOs," Pacific-Basin Finance Journal, Elsevier, vol. 40(PA), pages 17-35.

    More about this item

    Keywords

    Gender; CEO; State-owned enterprise; China; Executive compensation;

    JEL classification:

    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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