Gold for now and the golden years: Effects of CEO stock options and retirement pay on cross-border acquisitions
dc.contributor.author | Lewellyn, Krista B. | |
dc.date.accessioned | 2022-10-21T01:32:17Z | |
dc.date.available | 2022-10-21T01:32:17Z | |
dc.date.issued | 2018-07-09 | |
dc.description.abstract | Abstract Purpose The purpose of this paper is to draw from regulatory focus theory, to examine the effects of the “gain/no gain” nature of stock options and retirement pay on the decision to engage in cross-border acquisitions. The moderating effects of managerial discretion arising from the external industry context and internal organizational leadership structure are also examined. Design/methodology/approach The authors employ random effects negative binomial regression analysis with a longitudinal (2006–2016) data set of US public companies operating in four industries with differing levels of industry discretion: the oil and gas, paper and packaging, aerospace and defense, and telecommunications. Findings The findings indicate that both CEO in-the-money stock options and retirement pay are positively related to cross-border acquisition activity. The results also demonstrate that managerial discretion, arising from the firm’s external industry context, accentuates the positive relationship between both the value of CEO in-the-money stock options and retirement pay with cross-border acquisition activity. Practical implications The findings provide implication for practice as understanding how retirement pay and stock options, both of which make up a substantial portion of overall CEO pay in the USA, motivate cross-border acquisition activity, may improve decisions by executives. The evidence also provides guidance to boards of directors who are charged with the responsibility of creating CEO compensation contracts. Originality/value The paper fills important gaps in the existing research on the influence of compensation elements on firm outcomes, by offering a novel explanation for how in-the-money stock options and retirement pay affect CEOs’ motivations to engage in cross-border acquisitions. | en_US |
dc.identifier.citation | Lewellyn, K. (2018), "Gold for now and the golden years: Effects of CEO stock options and retirement pay on cross-border acquisitions", Journal of Strategy and Management, Vol. 11 No. 3, pp. 306-327. https://doi.org/10.1108/JSMA-08-2017-0062 | en_US |
dc.identifier.issn | 1755-425X | |
dc.identifier.uri | http://hdl.handle.net/11416/883 | |
dc.language.iso | en_US | en_US |
dc.publisher | Emerald Insight | en_US |
dc.subject | Stocks | en_US |
dc.subject | Chief executive officers | en_US |
dc.title | Gold for now and the golden years: Effects of CEO stock options and retirement pay on cross-border acquisitions | en_US |
dc.type | Article | en_US |