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This paper examines the relationship between executive cash compensation and company performance for a sample of large UK companies, focusing in particular on the financial services industry, since incentive misalignment has been blamed as one of the factors causing the global financial crisis...
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bank risk taking and improved bank performance in the Crisis. A nascent literature shows that inside debt may dampen CEOs …' risk taking incentives. Unlike the industrial firms that have been the main focus of this literature, however, banks are … subject to pervasive regulatory oversight to constrain risk taking. Therefore, the transmission of risk taking incentives …
Persistent link: https://www.econbiz.de/10013095013
This paper develops a theoretical framework to study the impact of bonus caps on banks' risk taking. In the model … market mobility, bonus caps simultaneously reduce risk shifting by bank executives (too much risk taking because of limited … of bonus caps critically depend on initial conditions, including the relative importance of risk shifting versus …
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This paper evaluates the impact of external financing on market risk for the listed firms in Vietnam's banking industry … changing leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and … changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var, increases from 0 …
Persistent link: https://www.econbiz.de/10012016841
Relative performance evaluation (RPE) is, at least on paper, enjoying widespread popularity in determining the level of executive compensation. Yet existing empirical evidence of RPE is decidedly mixed. Two principal explanations are held responsible for this discord. A constructional challenge...
Persistent link: https://www.econbiz.de/10011526823