Title: Entrepreneurial rewards and economic performance: an empirical study of the best small companies

Authors: Jooh Lee, Harold W. Lucius, Steven A. McNeil

Addresses: College of Business, Rowan University, Glassboro, NJ 08028, USA. College of Business, Rowan University, Glassboro, NJ 08028, USA. College of Business, Rowan University, Glassboro, NJ 08028, USA

Abstract: This study attempts to examine a different spectrum of CEO compensation and economic performance in small- and medium-sized firms in America. Particularly, this study explores the directions and magnitudes of the relationships between compensation variables (cash-based short-term vs. long-term compensation) and economic performance (accounting- and market-based performance) after controlling for other interacting factors like CEO tenure, CEO stock ownership, and industry type. The researchers find that CEOs compensation in small- and medium-sized firms, in different types of industries, is positively linked to those firms| economic performance, particularly with respect to market-based performance. With respect to the control variables, only the CEO|s stock ownership shows a significantly positive sign in determining the CEO|s compensation.

Keywords: CEO compensation; accounting-based performance; market-based performance; SMEs.

DOI: 10.1504/IJTM.1999.002748

International Journal of Technology Management, 1999 Vol.17 No.7/8, pp.728-743

Available online: 06 Jul 2003 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article