IDEAS home Printed from https://ideas.repec.org/a/eme/ajbpps/v29y2014i1p5-25.html
   My bibliography  Save this article

Something old, something new: culture and CEO compensation revisited

Author

Listed:
  • Katalin Takacs Haynes

Abstract

Purpose - – This study is a replication of Tosi and Greckhamer's work examining how uncertainty avoidance, power distance, individualism and masculinity/femininity are related to total CEO pay, the ratio of variable to total CEO pay and the ratio of CEO pay to the pay of the lowest level employees in 23 countries. Its main purpose is to investigate whether the replication confirms, questions or extends the results of TG2004. Design/methodology/approach - – Tosi and Greckhamer used generalized linear modeling (GLS) to analyze the relationships between Hofstede's four cultural dimensions and CEO compensation. In the replication, the author used GLS to retest the original seven hypotheses with more recent data from Hofstede and test the same hypotheses relying on cultural values and practices scores from the GLOBE study. Further, using firm-level data unavailable for the original study, the author analyzed fixed and random effects in mixed models. Findings - – The replication generally confirms the findings of the original study for the effects of power distance, individualism and masculinity on CEO total pay. Results are mixed or indicate the lack of significant effect for other relationships. Research limitations/implications - – This study reexamines the effects of country-level contextual variables in the area of CEO compensation. Originality/value - – The replication presents firm-level CEO compensation and firm performance data from 21 countries, extending the original study and unveiling possible spurious effects.

Suggested Citation

  • Katalin Takacs Haynes, 2014. "Something old, something new: culture and CEO compensation revisited," American Journal of Business, Emerald Group Publishing Limited, vol. 29(1), pages 5-25, April.
    • Handle: RePEc:eme:ajbpps:v:29:y:2014:i:1:p:5-25
    DOI: 10.1108/AJB-07-2013-0045
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJB-07-2013-0045/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJB-07-2013-0045/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/AJB-07-2013-0045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. El-Helaly, Moataz & Ntim, Collins G. & Soliman, Mark, 2020. "The Role of National Culture in International Financial Reporting Standards Adoption," Research in International Business and Finance, Elsevier, vol. 54(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ajbpps:v:29:y:2014:i:1:p:5-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.