Manzur Rahman

Multinationality, CEO compensation, and corporate governance: some empirical evidence

Looks at previous research on the differences between multinational corporations (MNCs) and domestic corporations (DCs) and the theories underlying them, relating the ideas to optimal compensation packages for managers. Examines a sample of 724 MNCs and US domestic firms to compare the degree of alignment of their chief executive officer compensation packages and finds that average compensation changes for every

Corporate Governance in the European Union: Firm Nationality and the ‘German’ Model

1,000 change in equity value are

National corporate social policy, corporate governance systems, and organizational capabilities

33 for DCs and only

Convertible bond calls by multinational and domestic firms: an agency cost perspective

12 for MNCs. Analyses further to find out why and suggests that it is due to the higher‐valued investment opportunities of MNCs and differences in their corporate governance structures.

Regional economic integration and foreign direct investment: The case of NAFTA

While there has been some convergence in corporate governance codes and securities regulations across the European Union (EU), the remaining areas of divergence are the most contentious as they reflect differences in fundamental societal norms and values. I propose that using the multinational corporation as the referent unit of analysis yields a means for making a qualitative distinction between the two regimes. I suggest that at least for firms with EU‐wide scope, certain critical elements of the German model may be more appropriate, as the neoclassical justifications of the Anglo‐American model are less reliable in such a setting.

Information Technology, International Marketing and Foreign Subsidiaries' Market Share

Purpose In this paper, the authors aim to look at the relationship between divergent national corporate social policies as embedded in corporate governance regimes and the development of the firm’s organizational capabilities. More specifically, the authors illustrate how the different systems of corporate governance developed in the USA and Germany are major resource-based factors on the decision to develop production-related organizational capabilities. The authors develop an integrative framework, drawing on both the corporate governance, as well as strategic management literatures, to explain idiosyncrasies and commonalities in capability development. In the aggregate, this would lead to differential corporate social and economic performance between Germany and the USA. Design/methodology/approach This is a conceptual paper that develops a framework to link national corporate social policy as embedded in governance systems to corporate social and economic performance. Findings Corporate governance systems – embodying divergent corporate social responsibility (CSR) orientations vis-a-vis the firm’s stakeholders – can be viewed as determinants of group-specific resources that will not be transferable across different nation-states, leading to divergent corporate social and economic performance. Originality/value The analysis emphasizes that CSR is an essential element of corporate governance. The authors highlight that regulatory, normative and cognitive institutional structures and orientations help to utilize and configure important firm-specific, industry-specific and country-specific resources and capabilities. This framework also contributes to recent developments in the corporate governance and management literatures that position CSR as a central element of corporate governance institutions.

The Impact of Regional Integration on Insider and Outsider FDI

Abstract In this paper, we investigate the valuation effects of convertible bond calls by multinational and domestic firms. The agency-theoretic models of Myers (1977) and Jensen (1986) suggest that the interaction of multinationality and (1) growth opportunities and (2) free cash flow, respectively, should lead to differential valuation effects. However, the two theories posit the valuation impacts to be in opposite directions. Event study results of convertible bond calls show that, on average, multinational and domestic firms have similar valuation effects to convertible bond calls. However, the cross-sectional tests show that multinationality does impact valuation contingent on a firms free cash flow and degree of internationalization.