State-owned enterprises (SOE) are essentially extensions of the government and are therefore responsible for multi-task objectives. The incentive system for SOE managers consists of both monetary compensation and promotion within the bureaucratic system. Political promotion is key to...

This paper investigates the usefulness of relative performance evaluation (RPE) for the incentive scheme in an undeveloped economy lacking market-based competition. In a sample of China's listed state-owned enterprises (SOEs) during 2001-2005, 41% of the Chairmen of the Board or CEOs who left...