The promotion tournament as a potentially important incentive mechanism for top management in transition economies has not been examined by the literature on managerial incentives. This paper attempts to fill this important gap in the literature. The paper begins with modifying the empirical...

This article provides evidence on how executive compensation relates to firm performance in firms listed in the Shanghai and Shenzhen Stock Exchanges in China. Using comprehensive financial and accounting data on China's listed firms from 1998 to 2002, augmented by unique data on executive...