Dissertations / Theses on the topic 'CEO Pay-performance Sensitivity'
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1
Koskelo, E. (Eerik). "CEO compensation and pay-for-performance sensitivity." Master's thesis, University of Oulu, 2014. http://urn.fi/URN:NBN:fi:oulu-201403131171.
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This thesis determines the state of recent developments in CEO compensation in the spirit of corresponding literature. Besides the literature review, empirical study provides further evidence on CEO pay-for-performance sensitivities in the US listed companies during 2007–2011 and containing Compustat Execucomp data of more than 33,000 CEOs from more than 3,000 companies. I build the regression similar to methods in a groundbreaking paper from Jensen and Murphy (1990a) and expecting positive and significant relationship between the change in CEO total compensation and shareholder wealth. My estimate of the pay-for-performance relation for chief executive officers indicates CEO wealth changes by $4.93 per $1,000 change in shareholder wealth. Role of the value of CEO stock holdings plays the most important role determining pay-for-performance sensitivity a $4.7 change in CEO wealth per 1,000 change in shareholder wealth. I also report CEO total mean compensation during 2007–2011 is $5,968,000 a year. The mean value of option awards have declined by 18% and median stockholdings have increased during the same period by 130%. Relatively high value of pay-for-performance sensitivity and CEO stockholdings may help other shareholders to solve the differing interests of their and CEOs. Besides stock rewards, other compensation methods are needed to minimize the effect of systematic risk. Relative performance evaluation RPE, could be used together with equity-based incentives but they are not widely used in US listed companies. However, further research is needed to determine how equity-based compensation affects on CEOs excessive risk taking.
2
Shaw, Paul Anthony. "CEO pay-performance sensitivity in South African financial services companies." Diss., University of Pretoria, 2012. http://hdl.handle.net/2263/27027.
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Orientation: CEO remuneration has attracted attention over the past two decades, with significant renewed interest in light of the role it is said to have played in contributing to the global financial crisis. At the heart of the issue is the perceived weak relationship between corporate performance and CEO remuneration.Research purpose: The purpose of this study was to describe the relationship between corporate performance and CEO remuneration within the South African financial services industry.Motivation for the study: The motivation for the study was to develop a deeper understanding of the relationship within the South African context, as South African banks have remained stable and profitable through the financial crisis.Research design approach and method: The research was a quantitative, archival study, conducted over a six year time period. The primary statistical techniques used in the study included: bivariate regression analysis, multiple regression analysis, and analysis of variance.Main findings/results: The primary finding was that the relationship between corporate performance and CEO remuneration is favourable (moderate to strong), but has experienced a decline. This finding emphasises the impact that macroeconomic trends have on the relationship and the role of managerial power during periods of economic uncertainty.The research further describes the structural changes in CEO remuneration with a shift away from variable pay.Practical managerial implications: The results suggest that the use of discretion and the growing impact of managerial power will be key challenges that iii remuneration committees will face in maintaining a favourable relationship between the two constructs in the future.Contribution/value add: The study provides context to CEO remuneration within a South African framework. It further provides provides a key insight that the relationship between corporate performance and CEO pay is highly dependent on the macroeconomic environment, and that CEO pay in the South African financial services is experiencing structural changes.Dissertation (MBA)--University of Pretoria, 2012.
Gordon Institute of Business Science (GIBS)
unrestricted
3
Nellkrans, Gabriel, and Seyfi Dogan. "Pay-performance sensitivity during financial distress : Did the financial crisis change payperformance sensitivity?" Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-255729.
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This study examines the existence of pay-performance sensitivity in total compensation and bonus during the financial crisis, using data between 2007-2010 from Swedish 196 listed firms. We perform panel data regression analysis of CEO compensation on financial performance measured as stock returns. Our results indicate that there is, although not significant, a weak positive relationship between CEO compensation and firm performance during 2007-2010. However during 2009-2010 in a market state defined as post-crisis we find weak negative pay-performance sensitivity at a significance level of 10 %. Nevertheless, as regards to the bonus paid to executives there was a significantly positive relationship relative bonus % and firm performance. These results contribute to our understanding of the pay-performance sensitivity in times of financial disturbance, highly relevant to the existing debate considering CEO compensation.
4
Steyn, Gideon Francois. "The relationship between CEO compensation and future share returns in South Africa." Thesis, University of the Western Cape, 2015. http://hdl.handle.net/11394/5272.
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Magister Commercii - MComAs a result of high economic inequality, widespread discontent with excessive chief executive officer (CEO) compensation levels is acute in South Africa (SA). Some commentators argue that instead of high levels of CEO pay causing inequality, it may be part of the solution if higher levels of CEO compensation translate into better company performance, so reducing unemployment. International studies investigating the relationship between CEO short-term cash compensation and current company performance generally report a weak or no relationship where accounting based measures of performance are used. Developments in the international literature reflect a stronger relationship when long-term incentive compensation (LIC) is included and total shareholder return (TSR) used to measure company performance. However, a concerning negative association between the highest paid CEOs in terms of excess LIC and future abnormal TSR is reported. In contrast, SA pay-performance research is largely not reflective of the developments in the international literature, with local studies mostly finding no pay-performance relationship, except where size-related accounting measures are used. As a result of the strong correlation between CEO pay and company size reported in the international literature, and local studies not adequately controlling for company size, the accuracy of the conclusions drawn in prior studies on the pay-performance sensitivity relationship in SA are brought into question. This study addresses the gaps in the SA literature by investigating the relationship between the size-adjusted excess CEO compensation and future abnormal TSR for the top 100 SA companies listed on the Johannesburg Stock Exchange for the period 2011 to 2013. A positive relationship is found between future abnormal TSR and short-term cash compensation, but not LIC. The levels and structure of CEO compensation in SA is also described.
5
Forst, Arno. "Insider Entrenchment and CEO Compensation in Entrepreneurial Firms: An Empirical Investigation." VCU Scholars Compass, 2009. http://scholarscompass.vcu.edu/etd/1714.
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This study investigates the effects of insider entrenchment on Chief Executive Officer (CEO) compensation in firms conducting an initial public offering (IPO). The sample comprises 220 US firms that went public between 1996 and 2002. Corporate governance choices regarding entrenchment are captured by six provisions in the corporate charter and bylaws, as well as five anti-takeover statutes, which may or may not be in effect in the state of incorporation. Firm-level items are supermajority requirements for charter amendments, bylaws amendments, and merger approvals, along with the presence or absence of a staggered board of directors, poison pills, and golden parachute agreements. The anti-takeover laws examined are Business Combination, Control Share Acquisition, Fair Price, Poison Pill Endorsement, and Constituencies Statutes. A factor analysis reveals three distinct components of entrenchment: firm- and state-level external entrenchment and firm-level internal entrenchment. External entrenchment is related to market control over management by means of corporate takeovers; internal entrenchment relates to shareholder control over management by means of their voting power. Evidence is found for a positive association between entrenchment at IPO and subsequent CEO cash and total compensation. These relationships are driven by firm-level external entrenchment. Firm-level external entrenchment is also significantly and positively associated with CEO stock-based compensation. The positive effects of entrenchment at IPO on CEO compensation appear not to be transitory and remain constant for at least five years post-IPO. Furthermore, entrenchment at IPO is shown to affect CEO pay-for-performance sensitivity. On balance, entrenchment reduces the sensitivity of CEO compensation to stock returns and returns on assets. The results of this study underscore the crucial importance of insiders' governance decisions made at the time of the IPO. Little support is found for a re-balancing of components of the CEO's compensation contract in response to entrenchment as predicted under the optimal contracting theory of compensation contracts. The findings of this study are almost entirely consistent with the managerial power theory, according to which entrenchment at IPO causes a permanent shift in bargaining power, which enables CEOs to influence compensation contracts in their favor.
6
JIN, Man. "An analysis of the effects of the probability of informed trading (pin) on corporate diversification discount and CEO pay-performance sensitivity : evidence from China." Digital Commons @ Lingnan University, 2011. https://commons.ln.edu.hk/fin_etd/2.
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This thesis includes estimating the probability of informed trading, PIN, developed by Easley, Kiefer and O’Hara (1996, 1997a, 1997b), for a large sample of listed firms in China from 2002 to 2008, and I use PIN to explore two independent research questions in corporate finance.
First, the probability of informed trading is applied to explain the discount in value for firms with diversified business operations. Although aiming to increase firm value, the corporate diversification decision usually results in a firm value discount, for a variety of reasons, one of which is the transparency problem. My study directly tests the relation between the information asymmetry revealed from the stock market and the firm value discount due to diversification decision. The results show that the corporate diversification decisions result in a lower firm value in China, mainly because the diversified firms suffer from a higher level of information asymmetry or a lower level of transparency. After controlling for the measure of information asymmetry, the strategy of diversification itself does not reduce firm value.
Second, the probability of informed trading is applied to explain the payperformance sensitivity of CEO compensation in Chinese listed firms. The payperformance sensitivity measures the change in managerial compensation based on the change in shareholder wealth. A higher information asymmetry helps and encourages shareholders to spend more on incentivizing the management team. My results show that higher level information asymmetry is associated with higher payperformance sensitivity of CEOs in China. The result also holds if information asymmetry is approximated by analysts’ forecast errors.
According to the estimates of PIN in this thesis, Chinese firms are shown to exhibit a higher level of information asymmetry than what has been found in the U.S. market. The thesis ends with a brief discussion of the results and what future research could follow.
7
Singal, Manisha. "Corporate Governance and Strategic Behavior: A Study of Acquisitions and CEO Compensation Practices of Publicly-Owned and Family-Controlled Firms in S&P 500." Diss., Virginia Tech, 2008. http://hdl.handle.net/10919/77369.
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Recent research has suggested that interest alignment, i.e., the degree to which members of an organization are motivated to behave in line with organizational goals, is a source of competitive advantage that can generate rents for the firm (Gottschlag and Zollo, 2007). Drawing on agency theory, this dissertation tests whether the interest alignment premise manifests itself differently in the strategic behavior of family-controlled firms when compared to their nonfamily peers. In particular, for firms in the S&P 500, I evaluate the results of two important strategic policies; mergers and acquisitions, as well as CEO compensation practices.
In studying acquisitions made by family and nonfamily firms in the S&P 500 index from 1992-2006, I find that family firms are more careful when embarking on actions leading to mergers than non-family firms, as evidenced by their selection of smaller targets and targets who are in related businesses. I also find that there is a preponderance of cash purchases by family firms that does not vary with market movements and that completion times for merger transactions are shorter than for non family firms. The care and concern with which family-controlled firms choose their "mates" translates into higher stock returns when compared with non-family firms. Overall, I believe that family-controlled firms derive value from their merger and acquisition strategy.
With regard to CEO compensation practices, I find that family firms provide strong incentives to the CEO for superior performance but pay significantly lower than nonfamily firms in terms of both salary and stock-based pay. The pay-for-performance sensitivity between annual stock returns and total compensation is significantly greater for family firms in general, and for family CEOs when compared with compensation of CEOs in nonfamily firms. The pay-for-performance sensitivity is in turn positively related to firm performance, suggesting that firms with greater pay-for-performance sensitivity (family controlled firms) also perform better.
The analyses in my thesis thus illustrate that family-controlled firms and non-family firms in the S&P 500 differ in their strategic decision-making. It would be fair to say that family firms have longer investment horizons and give deliberate thought to expending resources whether for acquisitions or for CEO pay, and may suffer lower agency costs than nonfamily firms due to family governance (and public monitoring) which may lead to their relative superior performance. This dissertation finds that each acquisition made by a family controlled firm generates an extra return of 0.50% when compared with a nonfamily firm, and family controlled firms earn 0.50% every year directly attributable to pay-for-performance sensitivity.
The study thus underlines and reiterates the importance of instilling the long-term view in the management of all firms, lowering agency costs, and aligning the interests of managers with those of stockholders for superior financial performancePh. D.
8
Liu, Lichi, and 劉力綺. "Corporate Governance and CEO Pay-Performance Sensitivity." Thesis, 2011. http://ndltd.ncl.edu.tw/handle/49966797804158597635.
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碩士中國文化大學
會計學系
99
The Board is responsible for determining CEO compensation, board oversight on the ability of the past studies have shown that the company performance and CEO compensation have an effect. Therefore, the study of ownership structure and board of directors as the research variables, and the performance sensitivity of CEO compensation as the dependent variable, investigate how the ownership structure and board of directors affect the performance sensitivity of CEO compensation to reduce conflicts of interest between shareholders and managers.
9
Shang-MingHuang and 黃上銘. "Stock Repurchase, Pay-Performance Sensitivity and CEO Ownership." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/32596416859476354376.
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碩士國立成功大學
會計學系
102
The purpose of this study is to examine the relationship of stock repurchase, pay-performance sensitivity and CEO ownership. We try to answer three important repurchase questions: First, whether firms with greater pay-for-performance sensitivity tend to repurchase more. Second, whether firms with higher CEO ownership tend to buy back more. Finally, how pay-performance sensitivity and ownership together affect repurchase. We test sample comprising all TSE and over-the-counter (OTC) firms in Taiwan from 1998 to 2011 with empirical research. I find that pay-performance sensitivity does not significantly affect the stock repurchase. However, I do find a strong positive association between CEO ownership and stock repurchase. In addition, if we consider the effect of pay-performance sensitivity and CEO ownership simultaneously, the findings reveal a positive effect for pay-performance sensitivity, but a negative effect for CEO holding, suggesting a substitution effect.
10
Liu, Chia-Wei, and 劉嘉惟. "CEO Pay-Performance Sensitivity, Inside Debt, and Firm Innovation." Thesis, 2017. http://ndltd.ncl.edu.tw/handle/92qjz9.
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碩士國立彰化師範大學
會計學系
105
This paper is to examine whether CEO pay-performance sensitivities and inside debt affect firm innovation. According to agency theory, managers may damage shareholders’ wealth for maximizing their self-interest. Previous literatures have document that CEO compensation scheme is the way for fixing this agency problem. However, different CEO compensation schemes would lead CEOs to have different risk preferences. We try to argue that high CEO pay-performance sensitivity to option would motive CEO to take high risky projects, saying in-house R&D. In other way, granting CEO more inside-debt would motive CEO to avoid risky projects, in terms of in-house R&D. By investigating S&P 500 firms from 2006-2015, we find that that if firms have high CEO pay-performance sensitivity to option, they are willing to take downside risk from the innovation activities. Furthermore, firms with high CEOs’ inside debt have less risky projects, in terms of external patent acquisition. This paper tries to contribute the literatures to provide competent evidences for the influences of debt-like and equity-like compensations on innovation activities.
11
Hou, Pei-Xiu, and 侯佩秀. "The Influence of CEO Pay-Performance Sensitivity on Voluntary Disclosures." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/96997093875939865961.
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Lyu, Yunru, and 呂昀儒. "The Relationship between Blockholder Monitoring and CEO Pay-Performance Sensitivity." Thesis, 2011. http://ndltd.ncl.edu.tw/handle/38482483493703844616.
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碩士東海大學
企業管理學系碩士班
99
This study investigated the effect of blockholder monitoring the impact of CEO pay performance sensitivity.For this study, the performance indicators to measure by stock returns, and performance is divided into the external environment performance and internal capabilities performance. This study added a blockholder monitoring, blockholder ratio can strengthen the monitoring effect, and rate of change in blockholder can weaken the monitoring effect, observations CEO pay performance sensitivity will be affected. Divide the concept of performance into the external environment performance and internal capabilities performance and continue to observe the blockholder monitoring and CEO compensation and performance of the external environment, the performance sensitivity of the relationship between internal capabilities. In this study, the total CEO compensation, dividends into equity compensation and cash compensation, empirical results show that both the overall performance analysis only, or the performance down into external and internal environmental performance capability performance, performance on CEO pay has a positive relationship. Shows the overall performance of both the external and internal environmental performance capability performance, performance pay has highly pay performance sensitivity. The study also found that Taiwan's companies to blockholder ratio of positive results is not obvious, because there may be among Taiwan companies as blockholder holding interaction, resulting in weak oversight role; but Taiwan's blockholder turnover of listed companies weaken monitoring results are obvious, the more frequent changes in blockholder, monitoring results weaker, due to more frequent changes in blockholder, the CEO of the company's business there is the problem of asymmetric information, can not suppress the external environmental performance and CEO compensation connectivity; in the above results, CEO total compensation and CEO equity have similar results, but the result of CEO cash is difference, because CEO equity has more incentive effect and more flexible. In the performance divide, should strengthen the internal capacity of the link performance and CEO pay, reduce external environmental performance, so that it can highlight the CEO in the management of the importance of capacity; and changes in blockholder significantly larger, thus reducing the change in major shareholders to increase shareholder ownership rate compared to more efficient and be able to monitor blockholder have positive effects.
13
Pei-HsuanChiang and 江沛璇. "The Effect of Mandatory XBRL Adoption on CEO Pay-performance Sensitivity." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/5x859e.
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Hong, Shu-Li, and 洪淑莉. "The relationships among CEO''s pay-performance sensitivity, corporate governance and earning management." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/66290378281595105827.
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碩士雲林科技大學
財務金融系碩士班
96
This study investigates the relationship between the CEO’s pay-performance sensitivity (PPS) and the CEO’s behavior of earnings management. The CEO’s behavior of manipulating accounting earnings by discretionary accruals (DA) may be related to the effective superintendence on the board of directors. Generally speaking, the board of directors designs the compensation scheme according to CEO’s achievements, and it will decrease the CEO’s behavior of manipulating accounting earning if the corporate governance mechanism works. On the contrary, it will increase the CEO’s behavior of manipulating accounting earning if the corporate governance mechanism doesn’t work. We find that the association between CEO pay and reported income has positive influences on discretionary accruals, and the corporate governance index has negative influences on discretionary accruals.
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Wu, Si-Xuan, and 吳思萱. "The impact of the credit risk and Pay-Performance Sensitivity on CEO turnover." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/2c744z.
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碩士中原大學
會計研究所
103
The credit rating is the score which evaluates company’s future operational condition rated by professional institution. It also reflects the company’s credit risk and solvency. Therefore, the credit rating can also be considered an indicator of executives’ performance. Except for financial industry companies, I use companies listing in Taiwan stock exchange during 2009 to 2013 to conduct this research. And I use the score of credit rating as the level of credit risk. First, I investigate whether the credit risk will have impact on CEO turnover rate. Then I tend to find out whether high Pay-Performance Sensitivity will moderate the relationship between credit risk and CEO turnover. Finally, I try to learn whether the compensation committee will moderate the relationship between credit risk and CEO turnover. Empirical results show that the credit risk has a positive effect on CEO turnover. Moreover, I find Pay-Performance Sensitivity negatively moderate the relationship between credit risk and CEO turnover. However, it seems that the compensation committee could not moderate the relationship between credit risk and CEO turnover.
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Chen, Yi-Han, and 陳奕翰. "The Impact of the Mandatory Corporate Social Responsibility Report on CEO Pay-Performance Sensitivity." Thesis, 2017. http://ndltd.ncl.edu.tw/handle/bg6adv.
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碩士中原大學
會計研究所
105
This study examines the impact of mandatory disclosing corporate social responsibility (CSR) report on CEO''s pay-performance sensitivity. Firms are divided into two groups. One has better social responsibility (award firms), which is based on the Excellence in Corporate Social Responsibility conducted by CommonWealth Mangazine. Another is the firm that had issued CSR reports but did not get the award (non-award firms). Since the mandatory disclosure is implemented from 2014, the data of Taiwan listed companies from 2012 to 2015 are collected. The result shows that before the mandatory disclosure, the CEO''s pay-performance sensitivity does not have significant change for the award firms before and after mandatory disclosure. Finally, the CEO''s pay-performance sensitivity has increased for the non-award firms after mandatory disclosure, comparing before the mandatory disclosure. This research enhances the understanding of the relation of CEO''s pay-performance sensitivity and disclosure regulatory changes.
17
Park, Jinhong. "Say on Pay, CEO Pay Sensitivities, Firm Risk and Agency Costs of Debt." Thesis, 2022. https://hdl.handle.net/2440/136414.
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I examine how Say on Pay affects firms’ agency costs of debt. Using a sample of US listed firms and employing a difference-in-differences framework, I find some evidence that higher CEO delta leads to a decrease in stock return volatilities and lower agency costs of debt, consistent with Brockman, Martin and Unlu (2010). Further, I find some evidence that this decrease in agency costs of debt is concentrated in firms with long CEO tenures and high institutional ownership, within firms that show greater responsiveness to Say on Pay, implying that Say on Pay improves corporate governance in poorly governed firms and strengthens shareholder power. My findings are consistent with Correa and Lel (2016) and Cai and Walking (2011) and suggest that Say on Pay is an effective substitute for a corporate governance mechanism.Thesis (MPhil) -- University of Adelaide, Business School, 2022
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Liang, Shu-Wei, and 梁書瑋. "The Effect of Establishment of Compensation Committee and Its Quality on CEO Pay-Performance Sensitivity." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/59672458556770517236.
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碩士東吳大學
會計學系
102
This study examine whether establishment of compensation committee (hereafter, CC) and its quality can improve the association between CEO cash compensation and accounting performance (i.e., the pay-performance sensitivity, PPS). Using a sample of Taiwanese listed firms over the period spanning 2009-2012, the empirical results can support our argument that CC establishment have a positive effect on PPS. However, we do find that the higher CC quality, the positive association between CEO compensation and accounting earnings is more pronounced while we focus on the period of CC establishment. Overall, our findings indicate several compensation committee characteristics (e.g., meetings attendance, members’ directorship and tenure) have significant benefits in improving corporate governance mechanism of monitoring CEO compensation. Therefore, CC quality is dominated by its members’ attributes, that is, whether CC play a role of improving PPS depends on the characteristics of its committee members.
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Chen, Hui-Wen, and 陳惠文. "The Impact of Overlapping Financial Experts on CEO Compensation, Pay-Performance Sensitivity, and Earnings Management." Thesis, 2013. http://ndltd.ncl.edu.tw/handle/64283019449907256627.
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碩士國立臺灣大學
會計學研究所
101
The purpose of this study is to examine the impact of overlapping financial experts on CEO compensation, pay-performance sensitivity, and earnings management. The results support Chang et al. (2012) that financial experts sitting on both compensation and audit committees have an association with discretionary accruals and take conservative action by awarding CEO less equity-based compensation to reduce monitoring cost. Furthermore, the results show that the number of outside directorships held by overlapping directors has a positive relation with incentive-based compensation and earnings quality. The results present that financial experts are more experienced and knowledgeable if they hold more outside appointments. However, the negative impact caused by overlapping board structure on earnings management does not reduced even though financial experts are experienced and knowledgeable. Consist with Chang et al. (2012), this study finds no significant association between overlapping financial experts and pay-performance sensitivity.
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LAI, YI-AN, and 賴顗安. "The Influence of Independent Directors and Non-controlling Directors on CEO Pay Performance Sensitivity–Evidence From China." Thesis, 2019. http://ndltd.ncl.edu.tw/handle/pejpm6.
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碩士國立臺北科技大學
經營管理系
107
In this research use the data of China companies from 2008 to 2017 to investigate independent directors and non-controlling directors’ effect on CEO pay performance sensitivity. The empirical results prove that independent directors cannot improve CEO pay performance sensitivity, while non-controlling directors can improve CEO pay performance sensitivity, indicating that non-controlling directors is more effective in supervising senior management. This study further compares whether the enterprise do not have a CEO duality, and whether it is a state-owned enterprise, proving out that when a company has a CEO duality or it is a non-state-owned enterprise, non-controlling directors can effectively supervise senior management.