We develop a model that shows how rent-seeking behavior on the part of division managers can subvert the workings of an … bribes to some division managers. And because headquarters is itself an agent of outside investors, the bribes may take the …

group managers less, suggesting that such a power structure acts as a governance tool to mitigate the astronomical salaries … of Chinese managers. The results are robust to alternative metrics of decentralized power structure and executive … information environment reinforces this negative relationship. However, managers respond by increasing the probability of leaving …