This study uses a random effect panel model to examine the impact of CEO traits and compensation on earnings performance and financial leverage for the 729 listed US companies in ExecuComp over the period of 2001– 2010. The results indicate that CEO cash compensation has a negative relationship with earnings performance, but that it has a positive impact on financial leverage. Moreover, for CEO...

Unions and the Labor Market for Managers We examine the relationship between the employment and compensation of managers and CEOs and the presence of a unionized workforce. We develop a simple efficiency wage model, with a tradeoff between higher wages for workers and more monitoring, which requires more managers. The model also assumes rent sharing between workers, managers and the owners of t...

Bank payouts divert cash to shareholders, while leaving behind riskier and less liquid assets to repay debt holders in the future. Bank payouts, therefore, constitute a type of risk-shifting that benefits equity holders at the expense of debt holders. In this paper, we provide insights on how incentives stemming from inside debt impact bank payout policy in a manner that protects debt holder in...

We simultaneously analyze two mechanisms of the managerial labor market (CEO turnover and remuneration schemes) in two different regulatory regimes, namely before and after the sweeping governance reforms adopted in the UK in the 1990s. We employ sample selection models to examine firms in a pre-Cadbury Code period (1988-1993) and a post-Combined Code period (1998-2004). CEOs’ compensation and ...

Incoming CEOs and general managers don't have much time to show what they can do to improve a business's performance. (In 2006, for instance, about 40% of CEOs who left their jobs had lasted an average of just 1.8 years--and many of them were ushered out the door.) Within a few years at most, leaders must find ways to boost profitability, increase market share, overtake a competitor--whatever t...

This paper o¤ers direct evidence of the role of managerial talent in the market for CEOs. We construct two empirical measures of CEO talent based on perceptions of a CEO’s reputation and prior career outcomes. Using a newly hand-collected sample of 2,195 CEO successions between 1993 and 2005, we document that: 1) …rst-year total pay is an increasing and convex function of CEO talent, and increa...

The overwhelming dependency on the organizational use of Information Technology (IT) during the last two decades of twentieth centaury has dramatically changed the way of working for the most of the business organizations. IT not only holds benefits for organizations and for their chief executives officers’ (CEOs) but has also caused difficulties for CEOs to optimize the computing resources. In...

This study examines the relationship between chief executive officers’ (CEOs’) characteristics (e.g., tenure, experience, education, age and compensation) accounting conservatism for a sample of 672 yearly observations from both Jordanian industrial service companies listed on Amman Stock Exchange (ASE) during period 2014–2021. Using feasible generalised least squares, results show that CEOs wi...

This study’s objective was to understand how chief executive officers’ (CEOs) gender affects hotel businesses’ survival. Female managers’ influence has already been examined in other sectors, but researchers have not studied women CEOs’ role management and A sample of 2615 Spanish companies during the period 2005–2018 for their survival affected by variables financial aspects, years experience ...