Academic Journal
Executive Compensation and Agency Costs in Germany
20 pages 2003 Journal of Banking & Finance
Journal Details
Journal of Banking & Finance, 2003 Vol. 27 Issue 7 Pages 1391-1410
Finance
Journal Article, Academic Journal
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.