Summary of the General Discussion on “The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries”

Wing Thye Woo discussed the difficulties in measuring concepts such as collectivism and individualism, and noted that the study uses a survey that was conducted a few years ago. Woo asked whether it is reasonable to assume that these concepts are slow to change. Many participants argued that the concepts capture deep cultural aspects of different countries, which have changed little over decades and perhaps over centuries. Other participants argued that attitudes and values change quite dramatically in transition economies, such as China. Fukunari Kimura noted that the countries classified as individualistic were European countries and the United States, and countries classified as collectivist were Asian countries. Maybe, he asked, the study is capturing some cultural aspects other than collectivism and individualism? Other participants agreed and added that geographic and historical aspects might be of importance. Kimura continued and said that compensations exist that are not captured in the study....