An empirical study on the relationship between executive rewards and merger and acquisition of Chinese listed companies

Based on the M&A (merger and acquisition) of Chinese listed companies from 2005 to 2010, this paper empirically studies the relationship between executive rewards and M&A. The M&A samples include types of stock ownership replacement and asset transactions, and they are divided into four sub-samples according to the majority stockholder´s characteristics of acquiring companies and whether this M&A being before or after the non-tradable shares reform. The results demonstrate that the company asset size induced by M&A has significant positive effects on the executive rewards. There are no significant relationship between the company´s past business performances and the executive rewards. The degree of ownership concentration is positively related with executive rewards. At last, the non-tradable shares reform has exerted great influences on the ownership concentration degree.