Open Access. Powered by Scholars. Published by Universities.®

Business Law, Public Responsibility, and Ethics Commons

Open Access. Powered by Scholars. Published by Universities.®

Corporate Finance

2016

Iowa State University

Articles 1 - 1 of 1

Full-Text Articles in Business Law, Public Responsibility, and Ethics

The Impact Of Ceo Long-Term Equity-Based Compensation Incentives On Economic Growth In Collectivist Versus Individualist Countries, Cynthia J. Campbell, Rosita P. Chang, Jack C. Dejong Jr., Robert Doktor, Lars Oxelheim, Trond Randoy Jul 2016

The Impact Of Ceo Long-Term Equity-Based Compensation Incentives On Economic Growth In Collectivist Versus Individualist Countries, Cynthia J. Campbell, Rosita P. Chang, Jack C. Dejong Jr., Robert Doktor, Lars Oxelheim, Trond Randoy

Finance Publication

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 ...