Campus Units

Finance

Document Type

Article

Publication Version

Published Version

Publication Date

Summer 2016

Journal or Book Title

Asian Economic Papers

Volume

15

Issue

2

First Page

109

Last Page

133

DOI

10.1162/ASEP_a_00432

Abstract

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist countries.

Comments

This article is published as Campbell, C.J., Chang,R.P., DeJong Jr., J.C.,Doktor, R., Oxelheim, L., Randoy, T., The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries. Asian Economic Papers.; Summer 2016, 15(2); 109-133. Doi: 10.1162/ASEP_a_00432. Posted with permission.

Copyright Owner

MIT Press

Language

en

File Format

application/pdf

Published Version

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