The effect of upper echelons’ compensation on firm internationalization
AbstractThis paper is built upon previous work concerning how three factors—an upper echelon’s compensation, the total compensation level of a chief executive officer (CEO), and compensation gaps between a CEO and a top management team (TMT)—affect a firm’s international expansion level. Using longitudinal data (2000–2005) from 528 publicly listed firms in Taiwan as our sample, we found that CEO total compensation level and TMT total compensation were positively related to firms’ international expansion level, and that the larger the compensation gap between CEO and TMT, the higher the given firm’s international expansion level. The implications that these findings have for future research are discussed. Copyright Springer Science+Business Media, LLC 2013
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Asia Pacific Journal of Management.
Volume (Year): 30 (2013)
Issue (Month): 1 (March)
Contact details of provider:
Postal: P.O. Box 17, 3300 AA Dordrecht, the Netherlands
Web page: http://www.springerlink.com/link.asp?id=106589
Firm international expansion level; CEO compensation; TMT compensation; Compensation gap;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leone, Andrew J. & Wu, Joanna Shuang & Zimmerman, Jerold L., 2006. "Asymmetric sensitivity of CEO cash compensation to stock returns," Journal of Accounting and Economics, Elsevier, vol. 42(1-2), pages 167-192, October.
- Riu Yokota & Hitoshi Mitsuhashi, 2008. "Attributive change in top management teams as a driver of strategic change," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 297-315, June.
- Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
- Lien, Yung-Chih & Piesse, Jenifer & Strange, Roger & Filatotchev, Igor, 2005. "The role of corporate governance in FDI decisions: Evidence from Taiwan," International Business Review, Elsevier, vol. 14(6), pages 739-763, December.
- James Dow & Clara C. Raposo, 2005. "CEO Compensation, Change, and Corporate Strategy," Journal of Finance, American Finance Association, vol. 60(6), pages 2701-2727, December.
- Lawrence F. Katz, 1986.
"Efficiency Wage Theories: A Partial Evaluation,"
in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290
National Bureau of Economic Research, Inc.
- Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 325-342, June.
- Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
- Trevor Buck & Xiaohui Liu & Rodion Skovoroda, 2008. "Top executive pay and firm performance in China," Journal of International Business Studies, Palgrave Macmillan, vol. 39(5), pages 833-850, July.
- Hanlon, Michelle & Rajgopal, Shivaram & Shevlin, Terry, 2003. "Are executive stock options associated with future earnings?," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 3-43, December.
- Araujo, Luis & Rezende, Sergio, 2003. "Path dependence, MNCs and the internationalisation process: a relational approach," International Business Review, Elsevier, vol. 12(6), pages 719-737, December.
- Alessandro Minichilli & Guido Corbetta & Ian C. MacMillan, 2010. "Top Management Teams in Family-Controlled Companies: 'Familiness', 'Faultlines', and Their Impact on Financial Performance," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 205-222, 03.
- Main, Brian G M & O'Reilly, Charles A, III & Wade, James, 1993. "Top Executive Pay: Tournament or Teamwork?," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 606-28, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.