Ownership Concentration and Sensitivity of Executive Pay to Accounting Performance Measures : Evidence from Publicly and Privately-Held Insurance Companies
We investigate the relation between CEO compensation and accounting performance measures in a sample of publicly- and privately-held property-liability insurance companies. We find a significant positive association between return on assets and the level of compensation for publicly-held insurers. Consistent with optimal contracting theory, we find no such relationship for privately-held insurers. We also find that the change in compensation is significantly more sensitive to the change in return on assets for publicly-held insurers than privately-held insurers. Results suggest that within privately-held firms, CEO compensation is less based on objective measures like accounting information and more on subjective measures
Year of publication: |
[2000]
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Authors: | Ke, Bin |
Other Persons: | Petroni, Kathy R. (contributor) ; Safieddine, Assem (contributor) |
Publisher: |
[2000]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (37 p) |
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Type of publication: | Book / Working Paper |
Other identifiers: | 10.2139/ssrn.138838 [DOI] |
Classification: | C23 - Models with Panel Data ; J33 - Compensation Packages; Payment Methods ; M40 - Accounting and Auditing. General ; m46 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012743597