Top executive compensation, regional institutions and Chinese OFDI

Xiaohui Liu, Jiangyong Lu and Amon Chizema

Journal of World Business, 2014, vol. 49, issue 1, 143-155

Abstract: Integrating agency and institutional theories, this paper examines the impact of top-executive compensation and regional institutions on the outward FDI(OFDI) of a sample of Chinese-listed firms. The results show that top-executive cash pay and equity ownership have a positive association with OFDI. Differing from previous studies focusing on cross-country institutional variances, we take variations in within-country institutions into account and find that regional institutions in terms of product markets, factor markets and legal systems play an important role in OFDI and positively moderate the governance role of managerial equity ownership.

Keywords: Top-executive pay; Executive equity ownership; Regional institutions; OFDI; China (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (43)

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DOI: 10.1016/j.jwb.2013.04.004

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