Finance Seminar: Dr Michael Keefe

Board of director compensation in China: It pays to be connected​

We investigate the influence of network prominence on career outcomes in director networks of Chinese public firms from 2005 to 2014. We find that higher network prominence leads to increased compensation for independent and executive directors. We find that higher network prominence is positively related to director turnover for non-related directors, but negatively related to director turnover for related directors. Further, we find that higher network prominence leads to additional future directorships. Overall, we find that higher network prominence both directly leads to higher compensation and indirectly leads to higher compensation through the channels of labor mobility and additional board seats.

Dr Michael Keefe

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