Behind the Iron Cage: An Institutional Perspective on ISO 9000 Adoption and CEO Compensation

@article{Yeung2011BehindTI,
  title={Behind the Iron Cage: An Institutional Perspective on ISO 9000 Adoption and CEO Compensation},
  author={Andy C. L. Yeung and Chris K. Y. Lo and T. C. Edwin Cheng},
  journal={Organization Science},
  year={2011},
  volume={22},
  pages={1600-1612}
}
Although institutional theorists maintain that the widespread diffusion of ISO 9000 is the result of institutional forces, they have neglected the potential gains to top management in the perpetuation of the standard. Based on a longhorizon event study with control firms to detect long-term abnormal financial gains, we investigate the impact of ISO 9000 adoption on CEO compensation in the U.S. manufacturing industry from 1994 to 2006. We find that the CEOs’ total cash compensation was… CONTINUE READING

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