Top executive compensation, regional institutions and Chinese OFDI

Liu, Xiaohui; Lu, Jiangyong; Chizema, Amon

Top_executive_pay_and_outward FDI 12-182R3 1 April 2013.pdf (570.53 kB)

Top executive compensation, regional institutions and Chinese OFDI

journal contribution

posted on 2015-02-12, 09:44 authored by Xiaohui Liu, Jiangyong Lu, Amon Chizema

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.

Funding

Leverhulme Trust (RPG-160)

History

School

Business and Economics

Department

Business

Published in

Journal of World Business

Volume

49

Issue

1

Pages

143 - 155

Citation

LIU, X., LU, J. and CHIZEMA, A., 2014. Top executive compensation, regional institutions and Chinese OFDI. Journal of World Business, 49 (1), pp. 143 - 155.

Publisher

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2013-05-07

Notes

NOTICE: this is the author’s version of a work that was accepted for publication in Journal of World Business. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of World Business, 49 (1) (January 2014) DOI:10.1016/j.jwb.2013.04.004