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Social elites on the board and executive pay in developing countries: evidence from Africa

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journal contribution
posted on 2023-06-09, 04:33 authored by Bruce Hearn, Roger StrangeRoger Strange, Jenifer Piesse
This study applies a new multi-focal actor-centered institution-theoretic approach to examine the association between executive pay and the recruitment of social elites to the board of directors in developing countries. We use a sample of 119 initial public offerings (IPOs) from 17 African stock markets to model this relationship. The results suggest that a higher proportion of elites on the board is associated with lower executive pay. This is moderated by institutional quality; that is, lower institutional quality is associated with more directors drawn from social elites and with higher pay, while the opposite is true in higher-institutional-quality environments. Our findings confirm the importance of the social environment within which governance is embedded.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Journal of World Business

ISSN

1090-9516

Publisher

Elsevier

Issue

2

Volume

52

Page range

230-243

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2017-01-05

First Open Access (FOA) Date

2018-06-22

First Compliant Deposit (FCD) Date

2017-01-05

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