2013-06-19T12:31:36Z http://repub.eur.nl/oai

oai:repub.eur.nl/res/pub/10884 2012-11-14T12:33:37Z org:1 org:9745 col:2 access:open type:workingPaper set:neeo

urn:NBN:nl:ui:15-1765/10884 2012-11-14T12:33:37 mods http://hdl.handle.net/1765/10884 hdl:1765/10884 urn:NBN:nl:ui:15-1765/10884 Extending the Managerial Power Theory of Executive Pay: A Cross National Test text workingPaper http://hdl.handle.net/1765/10884 http://repub.eur.nl/res/pub/10884/ERS-2007-090-ORG.pdf application/pdf Filesize: 375 KB born digital Contextual factors are typically neglected in both theorizing and empirical tests on executive pay. The fast majority of empirical investigations use data from U.S. based firms. Theoretical implications are typically developed, understood and tested on the basis of the U.S. context. However, the U.S. case is not the world wide standard. Pay in other countries is on average considerably lower and have a different pay mix. The puzzle that from the typical use of agency theory can’t be explained is the variance of pay practices that exist not only within countries but also across countries. This paper extends scholars renewed attention to managerial power theory on executive pay. It sets out how and why institutional theory must be included in explanations of executive pay. On the basis of a sample of executive pay packages from 17 different countries we test the theoretical extensions. Results indicate that institutions interact with firm level determinants of executive pay. Explanations for executive pay should therefore account for the variance of pay practices within and across countries. Highlighting that the institutional embeddedness of pay practices play an important role in finding conclusive explanations of current pay practices. Otten, J.A. Otten Jordan aut Heugens, P.P.M.A.R. Heugens Pursey aut 298676583 229347185 Erasmus Research Institute of Management (ERIM) Supporting host sht en English ERIM report series research in management Erasmus Research Institute of Management 1566-5283 ERIM Report Series Research in Management http://repub.eur.nl/res/col/2 ERS-2007-090-ORG Erasmus Research Institute of Management (ERIM), Erasmus University Rotterdam (ERIM is the joint researchinstitute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam) 2007-12-08 M J31 F23 M14 executive compensations executive pay managerial power theory Erasmus University Rotterdam oai:repub.eur.nl/res/pub/10884 IR OAIPMH feed (http://repub.eur.nl/oai) 2008-01-15T16:33:04Z 2011-07-06T14:10:24Z http://purl.org/eprint/accessRights/OpenAccess