Short Selling and Executive Pay-for-Performance Sensitivity
نویسندگان
چکیده
منابع مشابه
Pay for Short-Term Performance: Executive Compensation in Speculative Markets
We argue that the root cause behind the recent corporate scandals associated with CEO pay is the technology bubble of the latter half of the 1990s. Far from rejecting the optimal incentive contracting theory of executive compensation, the recent evidence on executive pay can be reconciled with classical agency theory once one expands the framework to allow for speculative stock markets. ∗ We wo...
متن کاملIndustry Structure, Executive Pay, and Short-Termism
This study outlines a new theory linking industry structure to optimal employment contracts and executive short-termism. Firms hire their executives using optimal contracts derived within a competitive labour market. To motivate effort firms must use some variable remuneration. Such remuneration introduces a myopia problem: an executive would wish to inflate early expected earnings at some risk...
متن کاملPay-Performance Sensitivity and Production Efficiency
We examine the interaction between risk (uncertainty) and production efficiency in determining pay-performance sensitivity in optimal executive compensation. Particularly, we show that the risk-incentive trade-off is exacerbated (attenuated) as production efficiency increases when the efficiency level is greater (less) than the level of compensation risk. This result suggests that the optimalit...
متن کاملExecutive Pay, Free Float, and Firm Performance: Evidence from Germany∗
In this paper we examine potential structural changes in the setup of executive payment schemes in Germany during the 1990 to 2002 period. Given substantial changes in corporate governance during this period, our initial hypothesis is that executive pay in later periods shows a stronger relation with firm performance than it was the case in the early 1990s. However, empirical evidence based on ...
متن کاملExecutive Pay and Corporate Financial Performance. An Explorative Data Analysis
The relationship between executive pay and corporate financial performance continues to attract wide academic, media and policy attention. The very high salaries enjoyed by senior executives in corporations in the US are often contrasted with the relatively low pay received by executives in Europe and Asia. Empirical research on executive pay has mainly concentrated on the pay-performance relat...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Journal of Industrial and Business Management
سال: 2018
ISSN: 2164-5167,2164-5175
DOI: 10.4236/ajibm.2018.84069