Authors: | Dyballa, Katharina Kraft, Kornelius |
Title: | Foreign competition and executive compensation in the manufacturing industry – A comparison between Germany and the U.S. |
Language (ISO): | en |
Abstract: | In this study we use import penetration as a proxy for foreign competition in order to empirically analyze (1) the impact of foreign competition on managerial compensation, (2) differences in the impact between Germany and the U.S and (3) whether the impact of import penetration is driven by implied efficiency effects. We use data from the manufacturing industry covering the period from 1984-2010 for Germany respectively 1992-2011 for the U.S and apply system GMM in order to solve potential endogeneity problems. It turns out that foreign competition leads to an increase of average per capita executive compensation in both countries. The impact of foreign competition on payperformance sensitivity differs between the US and Germany. A differentiation between imported intermediates (efficient sourcing strategy) and final inputs (competition) reveals that the impact of import penetration is not biased by efficiency effects. |
Subject Headings: | foreign competition system GMM international comparison managerial incentives outsourcing |
Subject Headings (RSWK): | Internationaler Wettbewerb Internationaler Vergleich Deutschland USA Führungskraft Vergütung |
URI: | http://hdl.handle.net/2003/37058 http://dx.doi.org/10.17877/DE290R-19055 |
Issue Date: | 2018 |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
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DP_1518_SFB823_Dyballa_Kraft.pdf | DNB | 355.04 kB | Adobe PDF | View/Open |
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This item is protected by original copyright
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