A simple measure of power for top management teams of publicly listed Chinese firms  

Topic:

A simple measure of power for top management teams of publicly listed Chinese firms

Time & Date:

10:30am-12:00pm, 2017/10/30

Venue:

Room 502, Daoyuan Building, CUHK(SZ)

Speaker:

Bin Ke, National University of Singapore

Abstract:

We develop and validate a low-cost measure of power for the top management teams (TMTs)
of all publicly listed Chinese firms. We show that our measure is positively associated with the
four power dimensions developed by Finkelstein (1992) for U.S. firms as well as three Asia-relevant
power dimensions, including political connection, seniority and gender. We find that
our TMT power measure is a valid proxy for TMT power for both SOEs and non-SOEs, and
for director TMT members and non-director TMT members. We also illustrate the usefulness
of our TMT power proxy by showing how powerful CFOs affect the corporate long-lived asset
impairment decision.