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The Effects of Internationalization on CEO Compensation

Lars Oxelheim and Trond Randoy
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Trond Randoy: Agder University College and Agder Research, Postal: Bygg H, Serviceboks 422, N-4604 Kristianstad, Norway

No 611, Working Paper Series from Research Institute of Industrial Economics

Abstract: This study examines the relation between the internationalization of firms and CEO compensation. Starting from a sample of Norwegian and Swedish listed firms we analyze the effects of internationalization as manifest in the capital market (international cross-listing), the market for corporate control (foreign board membership), and the product and service market (export and foreign sales). We conclude that all three markets contribute positively to the compensation level of CEOs. We argue that part of the higher CEO compensation in internationally oriented firms - as compared to less internationalized firms within the same country - reflects a risk premium for reduction in job security.

Keywords: CEO Compensation; Internationalization; Corporate Governance; CEO Tenure; Cross-Listing; Foreign Board Membership (search for similar items in EconPapers)
JEL-codes: G34 K12 M10 M12 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2004-02-09
New Economics Papers: this item is included in nep-bec, nep-fin and nep-law
References: View references in EconPapers View complete reference list from CitEc

Published in Journal of International Business Studies, 2005, pages 470-483.

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Working Paper: The Effect of Internationalization On CEO-Compensation (2002)
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