The Effect of Internationalization On CEO-Compensation
AbstractThis study addresses how firms’ internationalization affects CEO compensation. Based on a sample of Swedish listed firms we analyze the effect of internationalization through the product market (export), the capital market (foreign exchange listing), and the corporate governance market (foreign board membership). We find that internationalization with respect to the capital market and the corporate governance market strengthens the relationship between product market internationalization and CEO compensation. A higher degree of internationalization - via the capital and corporate governance markets - is found to be associated with shorter CEO tenure. We argue that part of the higher CEO compensation in international oriented firms reflects a risk premium for harsher monitoring and thus lower job security.
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Bibliographic InfoPaper provided by Lund University, Institute of Economic Research in its series Working Paper Series with number 2002/4.
Length: 21 pages
Date of creation: 17 Dec 2002
Date of revision:
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Postal: Institutet för Ekonomisk Forskning, Box 7080, SE-220 07 LUND, Sweden
Phone: +46 46-222 32 61
Fax: +46 46-222 34 06
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CEO compensation; internationalization; corporate governance; Sweden;
Other versions of this item:
- Oxelheim, Lars & Randoy, Trond, 2004. "The Effects of Internationalization on CEO Compensation," Working Paper Series 611, Research Institute of Industrial Economics.
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
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