More and more Chinese-listed companies report the loss of controlling shareholders in recent years. This seems to be a boon to the Chinese capital market, which is plagued by tunnelling from controlling shareholders. Employing the absence of controlling shareholders as a novel event, this study...

Purpose: The purpose of this paper is to investigate whether regulatory restriction on executive compensation in Chinese state-owned enterprises is beneficial to firm performance. The authors also examine the role of monitoring mechanisms in offsetting the effect of compensation restriction....