Journal of International Business Studies

, Volume 36, Issue 4, pp 470–483

The Anglo-American financial influence on CEO compensation in non-Anglo-American firms


DOI: 10.1057/palgrave.jibs.8400144

Cite this article as:
Oxelheim, L. & Randøy, T. J Int Bus Stud (2005) 36: 470. doi:10.1057/palgrave.jibs.8400144


This study examines the impact of Anglo-American financial markets on CEO compensation. Starting from a sample of Norwegian and Swedish listed firms, we analyse this effect as manifested in the capital market (Anglo-American cross-listing) and in the market for corporate control (Anglo-American board membership). These effects are analysed together with the geographically broader effect of the product and service market internationalisation of the firm. We conclude that all three effects contribute positively to the level of CEO compensation. We argue that the higher CEO compensation found in firms exposed to Anglo-American financial influence – as compared with firms not subject to such influence – reflects institutional contagion, the demand for and supply of viable CEO candidates, and a pay premium for increased risk of dismissal.


CEO compensation internationalisation corporate governance CEO tenure cross-listing foreign board membership dismissal risk 

Copyright information

© Academy of International Business 2005

Authors and Affiliations

  1. 1.Lund Institute of Economic Research, Lund UniversityLundSweden

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