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Full-Text Articles in Business
Insider Trading Restrictions And Top Executive Compensation, David J. Denis, Jin Xu
Insider Trading Restrictions And Top Executive Compensation, David J. Denis, Jin Xu
Purdue CIBER Working Papers
The use of equity incentives is significantly greater in countries with stronger insider trading restrictions, and these higher incentives are associated with higher total pay. These findings are robust to alternative definitions of insider trading restrictions and enforcement, and to panel regressions with country fixed effects. We also find significant increases in top executive pay and the use of equity-based incentives in the period immediately following the initial enforcement of insider trading laws. We conclude that insider trading laws are one channel through which cross-country differences in pay practices can be explained.
International Corporate Governance, Diane K. Denis, John J. Mcconnell
International Corporate Governance, Diane K. Denis, John J. Mcconnell
Purdue CIBER Working Papers
We survey two generations of research on corporate governance systems around the world, concentrating on countries other than the United States. The first generation of international corporate governance research is patterned after the US research that precedes it. These studies examine individual governance mechanisms – particularly board composition and equity ownership – in individual countries. The second generation of international corporate governance research considers the possible impact of differing legal systems on the structure and effectiveness of corporate governance and compares systems across countries.