Arbeitspapier
Trade, technologies, and the evolution of corporate governance
Do international trade and technological change influence how firms create incentives for human capital? I present a model that incorporates agency problems into a framework with firm heterogeneity and human capital. My model indicates that trade liberalizations and skill-biased technological change alter the way how the largest firms in an economy incentivize their managers. Increases in managerial reservation wages lead to a reduction in corporate governance investments and a rise in performance compensation since monitoring managers becomes less efficient. Using data on CEO compensation and entrenchment opportunities in public industrial firms in the U.S., I document strong empirical regularities in support of the model predictions. Firms allow for more managerial entrenchment and offer larger CEO compensation when their industries become more open to trade or when production becomes more I.T. intensive.
- Language
-
Englisch
- Bibliographic citation
-
Series: SFB/TR 15 Discussion Paper ; No. 525
- Classification
-
Wirtschaft
Trade and Labor Market Interactions
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Compensation Packages; Payment Methods
Firm Organization and Market Structure
Technological Change: Choices and Consequences; Diffusion Processes
- Subject
-
International Trade and Firm Organization
Agency Problems in International Trade
Endogenous Managerial Entrenchment
Corporate Governance and CEO Compensation
- Event
-
Geistige Schöpfung
- (who)
-
Schymik, Jan Simon
- Event
-
Veröffentlichung
- (who)
-
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
- (where)
-
München
- (when)
-
2015
- DOI
-
doi:10.5282/ubm/epub.25398
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-25398-0
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schymik, Jan Simon
- Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
Time of origin
- 2015
Other Objects (12)
Trade, technologies, and the evolution of corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate taxation and corporate governance
Corporate governance and corporate creditworthiness
Corporate ethics and corporate governance
Unternehmensmitbestimmung, Corporate Governance und der Deutsche Corporate Governance Kodex
Public Corporate Governance
Corporate risk disclosure and corporate governance
Corporate Governance bei Kapitalanlagegesellschaften - Fund Governance
Trade, technologies, and the evolution of corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate taxation and corporate governance
Corporate governance and corporate creditworthiness
Corporate ethics and corporate governance
Unternehmensmitbestimmung, Corporate Governance und der Deutsche Corporate Governance Kodex
Public Corporate Governance
Corporate risk disclosure and corporate governance
Corporate Governance bei Kapitalanlagegesellschaften - Fund Governance
Trade, technologies, and the evolution of corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate governance
Corporate taxation and corporate governance
Corporate governance and corporate creditworthiness
Corporate ethics and corporate governance
Unternehmensmitbestimmung, Corporate Governance und der Deutsche Corporate Governance Kodex
Public Corporate Governance
Corporate risk disclosure and corporate governance