TitleExecutive Compensation and Agency Costs in Germany
Publication TypeJournal Articles
Year of Publication2003
AuthorsElston, J, Goldberg, L
JournalJournal of Banking & Finance
Volume27
Issue7
Pagination1391-1410
Date Published2003
KeywordsFinance, OSU-Cascades, Supply Chain
Abstract

With the growth of international mergers like DaimlerChrysler, interest in executive compensation practices abroad, particularly in Germany, has increased. Using unique data sources for Germany, we find that similar to US firms, German firms also have agency problems caused by the separation of ownership from control, with ownership dispersion leading to higher compensation. In addition, there is evidence that bank influence has a negative impact on compensation.

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