Suchergebnisse

AbstractThis research examined the strategic responses of 70 US manufacturing firms to the European Community's unification movement.In general, internal firm's characteristics such as competitive advantages, performance goals, and the firm's current presence in Europe significantly influenced the nature of strategic responses.Surprisingly, external industry influences appeared somewhat ineffectual.The findings contradict conventional wisdom that posits industry influences as being the primary drivers of internationalization.

Using data on 200 large U.S. corporations in 1996, this study develops and tests a model in which the Compensation of Outside Directors is significantly related to Director Effort, External Monitoring, Internal Referents and Firm Performance, after controlling for Firm Size and Inside Ownership. There is some support for each set of hypotheses relating to the different independent variables in the model.

Research on the efficacy of stock‐based compensation for outside directors has documented a weak or non‐existent relationship with firm performance. Other variables also influence the relationships between these two constructs. Consistent with agency theory, we show, for a sample of 450 Standard & Poor 500 firms over the 1995–97 period that the use of director stock options and grants ratios was more strongly associated with positive performance in firms with (a) higher investment opportunities, and (b) weaker external monitoring. These findings have implications for compensation committees in the structuring of director compensation.