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The effect of upper echelons’ compensation on firm internationalization

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  • Wen-Ting Lin
  • Kuei-Yang Cheng

Abstract

This paper is built upon previous work concerning how three factors—an upper echelon’s compensation, the total compensation level of a chief executive officer (CEO), and compensation gaps between a CEO and a top management team (TMT)—affect a firm’s international expansion level. Using longitudinal data (2000–2005) from 528 publicly listed firms in Taiwan as our sample, we found that CEO total compensation level and TMT total compensation were positively related to firms’ international expansion level, and that the larger the compensation gap between CEO and TMT, the higher the given firm’s international expansion level. The implications that these findings have for future research are discussed. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Wen-Ting Lin & Kuei-Yang Cheng, 2013. "The effect of upper echelons’ compensation on firm internationalization," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 73-90, March.
    • Handle: RePEc:kap:asiapa:v:30:y:2013:i:1:p:73-90
    DOI: 10.1007/s10490-011-9261-9
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    5. M. Díaz-Fernández & M. González-Rodríguez & Biagio Simonetti, 2015. "Top Management Teams’ demographic characteristics and their influence on strategic change," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1305-1322, May.
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