IDEAS home Printed from https://ideas.repec.org/a/nms/joeems/doi_10.1688-1862-0019_jeems_2011_04_festing.html
   My bibliography  Save this article

Determinants of share-based compensation plans in Central and Eastern European public companies: An institutional analysis

Author

Listed:
  • Marion Festing
  • Ihar Sahakiants

Abstract

This paper discusses the adoption of share-based compensation plans among Central and Eastern European (CEE) public companies composing major national stock exchange indices in Poland (WIG 20), the Czech Republic (PX) and Hungary (BUX). The analysis shows that the spread of such pay practices depends on the characteristics of major shareholders of the company, the state and foreign parent companies being the most prominent influencing factors. The results are discussed in the light of the legal environment in respective countries.

Suggested Citation

  • Marion Festing & Ihar Sahakiants, 2011. "Determinants of share-based compensation plans in Central and Eastern European public companies: An institutional analysis," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(4), pages 338-357.
    • Handle: RePEc:nms:joeems:doi_10.1688/1862-0019_jeems_2011_04_festing
    as

    Download full text from publisher

    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2011-4-338
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chizema, Amon & Buck, Trevor, 2006. "Neo-institutional theory and institutional change: Towards empirical tests on the "Americanization" of German executive pay," International Business Review, Elsevier, vol. 15(5), pages 488-504, October.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Carroll, Thomas M & Ciscel, David H, 1982. "The Effects of Regulation on Executive Compensation," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 505-509, August.
    4. Zsuzsa Karoliny & Ferenc Farkas & József Poór, 2009. "In focus, Hungarian and Central Eastern European characteristics of hunman resource management – An international comparative survey," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 14(1), pages 9-47.
    5. Yun W. Park & Toni Nelson & Mark R. Huson, 2001. "Executive Pay And The Disclosure Environment: Canadian Evidence," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 24(3), pages 347-365, September.
    6. David J Sharp & Stephen B Salter, 1997. "Project Escalation and Sunk Costs: A test of the International Generalizability of Agency and Prospect Theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 101-121, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Pološki Vokić Nina & Kohont Andrej & Slavić Agneš, 2017. "Is there Something as an Ex-Yugoslavian HRM Model? – Sticking to the Socialist Heritage or Converging With Neoliberal Practices," Naše gospodarstvo/Our economy, Sciendo, vol. 63(4), pages 40-53, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elston, Julie Ann & Goldberg, Lawrence G., 2003. "Executive compensation and agency costs in Germany," Journal of Banking & Finance, Elsevier, vol. 27(7), pages 1391-1410, July.
    2. Samuel Y. Todd & Tamara A. Crook & Tony Lachowetz, 2013. "Agency Theory Explanations of Self-Serving Sales Forecast Inaccuracies," Business and Management Research, Business and Management Research, Sciedu Press, vol. 2(2), pages 13-21, June.
    3. Li, Donghui & Moshirian, Fariborz & Nguyen, Pascal & Tan, Liwen, 2007. "Corporate governance or globalization: What determines CEO compensation in China?," Research in International Business and Finance, Elsevier, vol. 21(1), pages 32-49, January.
    4. C. Chang & Sin-Hui Yen, 2007. "The Effects of Moral Development and Adverse Selection Conditions on Managers’ Project Continuance Decisions: A Study in the Pacific-Rim Region," Journal of Business Ethics, Springer, vol. 76(3), pages 347-360, December.
    5. Carlo Cambini & Sara De Masi & Laura Rondi, 2016. "CEO incentives in European energy utilities: evidence from regulated versus unregulated firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(2), pages 127-155, June.
    6. Salter, Stephen B. & Sharp, David J. & Chen, Yasheng, 2013. "The moderating effects of national culture on escalation of commitment," Advances in accounting, Elsevier, vol. 29(1), pages 161-169.
    7. Hannah S. Lee & David A. Griffith, 2012. "Comparative insights into the governance problems of agency theory: the influence of institutional environment on the basic human tenets," AMS Review, Springer;Academy of Marketing Science, vol. 2(1), pages 19-33, March.
    8. Carlo Cambini & Sara De Masi & Laura Rondi, 2013. "Incentive Compensation and Incentive Regulation: Empirical Evidence," IEFE Working Papers 58, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    9. Salter, Stephen B. & Sharp, David J., 2001. "Agency effects and escalation of commitment: do small national culture differences matter?," The International Journal of Accounting, Elsevier, vol. 36(1), pages 33-45, February.
    10. repec:eee:labchp:v:3:y:1999:i:pb:p:2485-2563 is not listed on IDEAS
    11. Barbara Su, 2023. "Banking practices and borrowing firms’ financial reporting quality: evidence from bank cross-selling," Review of Accounting Studies, Springer, vol. 28(1), pages 201-236, March.
    12. Yeon‐Koo Che & Kathryn E. Spier, 2008. "Strategic judgment proofing," RAND Journal of Economics, RAND Corporation, vol. 39(4), pages 926-948, December.
    13. Klapper, Leora F. & Love, Inessa, 2004. "Corporate governance, investor protection, and performance in emerging markets," Journal of Corporate Finance, Elsevier, vol. 10(5), pages 703-728, November.
    14. Hartarska, Valentina M. & Nadolnyak, Denis A., 2012. "Financing Constraints and Access to Credit in Post Crisis Environment: Evidence from New Farmers in Alabama," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124882, Agricultural and Applied Economics Association.
    15. Hasan, Iftekhar & Lozano-Vivas, Ana, 2002. "Organizational Form and Expense Preference: Spanish Experience," Bulletin of Economic Research, Wiley Blackwell, vol. 54(2), pages 135-150, April.
    16. Fabbri, Daniela & Menichini, Anna Maria C., 2016. "The commitment problem of secured lending," Journal of Financial Economics, Elsevier, vol. 120(3), pages 561-584.
    17. Sang Cheol Lee & Mooweon Rhee & Jongchul Yoon, 2018. "Foreign Monitoring and Audit Quality: Evidence from Korea," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
    18. DEGEORGE, François & DING, Yuan & JEANJEAN, Thomas & STOLOWY, Hervé, 2005. "Does Analyst Following Curb Earnings Management?," HEC Research Papers Series 810, HEC Paris.
    19. Xueyan Dong & Jingyu Gao & Sunny Li Sun & Kangtao Ye, 2021. "Doing extreme by doing good," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 291-315, March.
    20. Gerry Gallery & Emerson Cooper & John Sweeting, 2008. "Corporate Disclosure Quality: Lessons from Australian Companies on the Impact of Adopting International Financial Reporting Standards," Australian Accounting Review, CPA Australia, vol. 18(3), pages 257-273, September.
    21. Baarda, James R., 2003. "Current Law & Economics Debates: Tools for Assessing Fundamental Cooperative Changes?," 2003 Annual Meeting, October 29 31802, NCERA-194 Research on Cooperatives.

    More about this item

    Keywords

    Central and Eastern Europe; CEO Compensation; Comparative HRM; Institutional Environment; Ownership/Control Structures;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

    Statistics

    Access and download statistics

    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:nms:joeems:doi_10.1688/1862-0019_jeems_2011_04_festing. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Nomos Verlagsgesellschaft mbH & Co. KG (email available below). General contact details of provider: http://www.nomos.de/ .

    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.