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.