A Two-way Causal Link between Internationalization and CEO Equity Ownership in Chinese Firms

Xiaohui Liu and Jiangyong Lu

Chapter 6 in Chinese International Investments, 2012, pp 122-136 from Palgrave Macmillan

Abstract: Abstract Internationalization is a critical strategic decision for firms in both developed and emerging economies. Research generally focuses on the driving forces and outcomes of internationalization, especially the impact on CEO compensation. Since internationalization increases managerial complexity and risk premium, CEOs must be compensated accordingly. Their increased pay creates a convergence of interests between shareholders and managers. The relationship of internationalization with CEO compensation has been established in existing studies (Sanders & Carpenter, 1998; Oxelheim & Randøy, 2005) but they do not take into account the fact that CEO compensation is also an antecedent of international diversification.

Keywords: Foreign Direct Investment; Corporate Governance; Reverse Causation; Chinese Firm; Strategic Management Journal (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-36157-7_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230361577

DOI: 10.1057/9780230361577_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().