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摘要

How executives are rewarded is one of the many mysteries of China's increasingly powerful companies. Unravelling it is important, not least because it should help to explain corporate China's transformation from a state-controlled to a consumer-driven creature.rnResearch on this question has been surprisingly sparse. A new study by Zhihong Chen and Yuyan Guan, of the City University of Hong Kong, and Bin Ke, of Pennsylvania State University, casts a rare beam of light. However, its main achievement is to reveal how little is understood about the incentive structure of Chinese business.rnThe authors examine "red chips"-companies operating in China but incorporated abroad and listed in Hong Kong.