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

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Global index of the sharing economy

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Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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