The impact of CEO long-term equity-based compensation incentives on economic growth in collectivist versus individualist countries
(2016) In Asian Economic Papers 15(2). p.109-133- Abstract
This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist countries.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2b6eba28-1a13-4259-a3e4-8a7a9130e082
- author
- Campbell, Cynthia J. ; Chang, Rosita P. ; Dejong, Jack C. ; Doktor, Robert ; Oxelheim, Lars LU and Randøy, Trond
- organization
- publishing date
- 2016-06-01
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Asian Economic Papers
- volume
- 15
- issue
- 2
- pages
- 25 pages
- publisher
- MIT Press
- external identifiers
-
- scopus:84971321466
- wos:000376741000010
- ISSN
- 1535-3516
- DOI
- 10.1162/ASEP_a_00432
- language
- English
- LU publication?
- yes
- id
- 2b6eba28-1a13-4259-a3e4-8a7a9130e082
- date added to LUP
- 2017-01-26 09:45:26
- date last changed
- 2024-06-29 00:12:22
@article{2b6eba28-1a13-4259-a3e4-8a7a9130e082, abstract = {{<p>This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist countries.</p>}}, author = {{Campbell, Cynthia J. and Chang, Rosita P. and Dejong, Jack C. and Doktor, Robert and Oxelheim, Lars and Randøy, Trond}}, issn = {{1535-3516}}, language = {{eng}}, month = {{06}}, number = {{2}}, pages = {{109--133}}, publisher = {{MIT Press}}, series = {{Asian Economic Papers}}, title = {{The impact of CEO long-term equity-based compensation incentives on economic growth in collectivist versus individualist countries}}, url = {{http://dx.doi.org/10.1162/ASEP_a_00432}}, doi = {{10.1162/ASEP_a_00432}}, volume = {{15}}, year = {{2016}}, }