Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 8

could lead to an improvement in corporate governance practices, especially in SOEs. Finally, Table VI reports the results of the effect of board members’ remuneration in Chinese public companies. Results show that board members’ remuneration (LNDTP) contributes to firm value and the result is statistically significant at a 1% level. This result indicates that remuneration packages are an important mechanism for motivating top decision-makers in privately controlled firms (Li et al., 2013). Table 6: OLS Regression with Fixed Effects for Different Performance Measures and Ownership Proportion OpPerform is the performance measure, including ROA, CFOA, OCS, SPROD and Tobin’s Q. SOECG is the proportion of shares held by the central government. SOELG is the proportion of shares held by the local government. PRIVATE is the proportion of held by private investors. BLOCK is the non-controlling blockholders’ shareholding. PFOR is the proportion of shares held by residents outside mainland China, include: foreign nationals, residents of Hong Kong, Macau, and Taiwan. PBDSH is the proportion of shares held by the board members. LNDTP is the natural logarithm of the total emolument of the top three directors on the board. PEXESH is the percentage shareholding of the top three ranked executives. LNMGP is the total emolument of the top three executives. SIZE is the natural logarithm of total asset. LEV is the ratio of total debt to total assets. IORA is the total asset growth rate. DEVELOPI is geo-economic dummy variable for China’s economically developed regions, including Beijing, Tianjin, Shanghai and the coastal regions. Standard errors re reported in brackets and ***, **and † represent significance at 1%, 5% and 10% levels, respectively. Figure 1: Graph A: Tobin’s Q versus central SOEs The Relationship between Ownership Identity, Ownership Concentration, and Firm Performance: Evidence from China 24 Global Journal of Management and Business Research Volume XXII Issue VIII Version I Year 2022 ( ) A © 2022 Global Journals