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The impact of institutions in influencing IPO Firm voluntary disclosure of CEO salary

The impact of institutions in influencing IPO Firm voluntary disclosure of CEO salary
The impact of institutions in influencing IPO Firm voluntary disclosure of CEO salary
This study examines the influence of the structure of the institutional environment in determining whether a firm voluntarily discloses CEO salary or not. Using a unique sample of 202 IPO firms from across Africa between 2000 and 2014 we find that firm’s with higher proportions of board comprised of indigenous social elites are less likely to voluntarily disclose CEO pay while this is positively moderated by institutional quality. However CEO pay disclosure is much less likely in civil code law jurisdictions – in line with a lack of institutional complementarities between common law Anglo-Saxon framework within which executive pay disclosure is embedded and civil code law – and less likely in societies that have extensive ethnic fractionalization. This latter finding is a reflection of the necessity of a degree of institutional homogeneity within which successful assimilation of foreign “best practice” such as CEO pay disclosure can take place.
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2

Hearn, Bruce (2016) The impact of institutions in influencing IPO Firm voluntary disclosure of CEO salary. In Academy of International Business Annual Meeting, New Orleans, USA.

Record type: Conference or Workshop Item (Paper)

Abstract

This study examines the influence of the structure of the institutional environment in determining whether a firm voluntarily discloses CEO salary or not. Using a unique sample of 202 IPO firms from across Africa between 2000 and 2014 we find that firm’s with higher proportions of board comprised of indigenous social elites are less likely to voluntarily disclose CEO pay while this is positively moderated by institutional quality. However CEO pay disclosure is much less likely in civil code law jurisdictions – in line with a lack of institutional complementarities between common law Anglo-Saxon framework within which executive pay disclosure is embedded and civil code law – and less likely in societies that have extensive ethnic fractionalization. This latter finding is a reflection of the necessity of a degree of institutional homogeneity within which successful assimilation of foreign “best practice” such as CEO pay disclosure can take place.

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Published date: 20 July 2016
Venue - Dates: AIB 2016 Annual Meeting, New Orleans, United States, 2016-06-27 - 2016-06-28

Identifiers

Local EPrints ID: 423316
URI: https://eprints.soton.ac.uk/id/eprint/423316
PURE UUID: 20171eb3-8b3b-4272-9589-15a7e6d61787
ORCID for Bruce Hearn: ORCID iD orcid.org/0000-0001-9767-0198

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Date deposited: 20 Sep 2018 16:30
Last modified: 14 Mar 2019 01:22

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