Lei, Zhan; Mingchao, Cai; Wang, Yaoyao; Yu, Jing - In: Emerging Markets Finance and Trade 50 (2014) 3, pp. 126-161
According to agency theory, we hypothesize that underpayment of top management motivates management to overinvest. Using a sample of Chinese-listed companies for the period 2005-10, we assess the effect of managerial compensation on overinvestment and the effect of overinvestment on managerial...