2016

The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries

Reprint No. 2016:30

Author(s): Cynthia J. Campbell, Rosita P. Chang, Jack C. De Jong Jr., Robert Doktor, Lars Oxelheim and Trond RandøyYear: 2016 Title: Asian Economic Papers Volume (No.): 15 (2) Pages: 109–133

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. De Jong Jr., Robert Doktor, Lars Oxelheim and Trond Randøy


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.


Reference:
Campbell, Cynthia, Rosita P. Chang, Jack C. De Jong Jr., Robert Doktor, Lars Oxelheim and Trond Randøy (2016), "The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries". Asian Economic Papers 15(2), 109–133.

Lars Oxelheim

Contact

Ph: +46 8 665 4527
Mob: +46 70 861 9361
lars.oxelheim@ifn.se

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se