Conyon, MJ and Hass, LH and Vergauwe, SN and Zhang, Z (2019) Foreign Experience and CEO Compensation. Journal of Corporate Finance, 57. pp. 102-121. DOI https://doi.org/10.1016/j.jcorpfin.2017.12.016
Conyon, MJ and Hass, LH and Vergauwe, SN and Zhang, Z (2019) Foreign Experience and CEO Compensation. Journal of Corporate Finance, 57. pp. 102-121. DOI https://doi.org/10.1016/j.jcorpfin.2017.12.016
Conyon, MJ and Hass, LH and Vergauwe, SN and Zhang, Z (2019) Foreign Experience and CEO Compensation. Journal of Corporate Finance, 57. pp. 102-121. DOI https://doi.org/10.1016/j.jcorpfin.2017.12.016
Abstract
This paper investigates the relationship between a CEO’s foreign experience and CEO compensation. Our analysis is based on the constituent firms of the UK FTSE 350 index from 1999 to 2015. We find that foreign CEOs and national CEOs with foreign working experience receive significantly higher levels of total compensation compared to similar UK CEOs without such characteristics. The results are robust to the endogenous CEO selection using propensity score matching methods, as well as other modelling approaches. Our results show that pay premiums are attributable to the specialized foreign expertise and foreign networks of CEOs, which stem from foreign experience rather than broader general managerial skills.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Foreign experience; Corporate governance; Executive compensation; International business |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School Faculty of Social Sciences > Essex Business School > Essex Accounting Centre |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 12 Jan 2018 15:19 |
| Last Modified: | 06 Jan 2022 13:45 |
| URI: | http://repository.essex.ac.uk/id/eprint/21027 |
Available files
Filename: CHVZ_20170930.pdf