Abstract
In this paper, we investigate the relation between CEOs’ power and their perks in Chinese banks over the period from 1999 to 2011 period. We find that banks with more powerful CEOs, as measured by the CEO as the only insider and the CEO’s directorships, provide greater perks. This finding could be explained by social needs and monitoring difficulties but not by entrenchment. Powerful CEOs tend to maintain connections or “guanxi” by building political ties and attending more business entertainment activities. They also have lower pay-performance sensitivity. Only a gender-diverse board provides better monitoring to reduce perks.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
