The selection and weighting of performance indicators are of vital importance for an effective compensation contract. We examine the effect of the reclassification of income statement items, caused by China’s new Accounting Standards for Business Enterprises (ASBE) in 2007 on the weight...

Social ties, as informal institutions, contribute to firms' performance in emerging economies. Formal market-supporting institutions in emerging economies are in general less developed, social ties cultivated by entrepreneurs thus serve as substitutes for formal institutional support. However,...