Shao, Ruiqing; Chen, Chunhua; Mao, Xiangzu - In: China journal of accounting research : CJAR 5 (2012) 4, pp. 269-292
According to optimal contracting theory, compensation contracts are effective in solving the agency problem between stockholders and managers. Executive compensation is naturally related to firm performance. However, contracts are not always perfect. Managers may exert influence on the...