Advanced

The Anglo-American financial influence on CEO compensation in non-Anglo-American firms

Oxelheim, Lars LU and Randoy, T (2005) In Journal of International Business Studies 36(4). p.470-483
Abstract
This study examines the impact of Anglo-American financial markets on CEO compensation. Starting from a sample of Norwegian and Swedish listed firms, we analyse this effect as manifested in the capital market (Anglo-American cross-listing) and in the market for corporate control (Anglo-American board membership). These effects are analysed together with the geographically broader effect of the product and service market internationalisation of the firm. We conclude that all three effects contribute positively to the level of CEO compensation. We argue that the higher CEO compensation found in firms exposed to Anglo-American financial influence - as compared with firms not subject to such influence - reflects institutional contagion, the... (More)
This study examines the impact of Anglo-American financial markets on CEO compensation. Starting from a sample of Norwegian and Swedish listed firms, we analyse this effect as manifested in the capital market (Anglo-American cross-listing) and in the market for corporate control (Anglo-American board membership). These effects are analysed together with the geographically broader effect of the product and service market internationalisation of the firm. We conclude that all three effects contribute positively to the level of CEO compensation. We argue that the higher CEO compensation found in firms exposed to Anglo-American financial influence - as compared with firms not subject to such influence - reflects institutional contagion, the demand for and supply of viable CEO candidates, and a pay premium for increased risk of dismissal. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
foreign board membership, dismissal risk, cross-listing, tenure, CEO compensation, corporate governance, CEO, internationalisation
in
Journal of International Business Studies
volume
36
issue
4
pages
470 - 483
publisher
Palgrave Macmillan
external identifiers
  • wos:000230113100008
  • scopus:22544466417
ISSN
0047-2506
DOI
10.1057/palgrave.jibs.8400144
language
English
LU publication?
yes
id
e7867974-bc1d-4e7c-8ae2-d41e0f24062c (old id 895145)
date added to LUP
2008-01-16 16:13:02
date last changed
2017-09-03 04:42:16
@article{e7867974-bc1d-4e7c-8ae2-d41e0f24062c,
  abstract     = {This study examines the impact of Anglo-American financial markets on CEO compensation. Starting from a sample of Norwegian and Swedish listed firms, we analyse this effect as manifested in the capital market (Anglo-American cross-listing) and in the market for corporate control (Anglo-American board membership). These effects are analysed together with the geographically broader effect of the product and service market internationalisation of the firm. We conclude that all three effects contribute positively to the level of CEO compensation. We argue that the higher CEO compensation found in firms exposed to Anglo-American financial influence - as compared with firms not subject to such influence - reflects institutional contagion, the demand for and supply of viable CEO candidates, and a pay premium for increased risk of dismissal.},
  author       = {Oxelheim, Lars and Randoy, T},
  issn         = {0047-2506},
  keyword      = {foreign board membership,dismissal risk,cross-listing,tenure,CEO compensation,corporate governance,CEO,internationalisation},
  language     = {eng},
  number       = {4},
  pages        = {470--483},
  publisher    = {Palgrave Macmillan},
  series       = {Journal of International Business Studies},
  title        = {The Anglo-American financial influence on CEO compensation in non-Anglo-American firms},
  url          = {http://dx.doi.org/10.1057/palgrave.jibs.8400144},
  volume       = {36},
  year         = {2005},
}