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set ex ante explicit severance pay agreements as one component in managing the optimal level of equity incentives. Younger … post payouts to managers are largely determined by the ex ante contract terms …
Persistent link: https://www.econbiz.de/10013116288
We examine the relations between golden parachutes (GPs), pay-performance sensitivity (delta), and managerial risk-taking. We find an insignificant effect of GPs, but a negative and significant interaction of GPs with delta, on risk-taking. These results are consistent with the “takeover...
Persistent link: https://www.econbiz.de/10013065544
2008 financial crisis. Strong and weak banks also stand apart: managers from weak banks took more risk than their peers in …
Persistent link: https://www.econbiz.de/10013002983
-merger performance. These results hold controlling for CEO overconfidence and cannot be attributed to firms altering incentives to induce …
Persistent link: https://www.econbiz.de/10013065780
We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via …
Persistent link: https://www.econbiz.de/10011963233
This paper studies how managerial compensation is shaped by the risk preference of shareholders. Firms with a large ownership held by "dual holders'' -- institutional investors that simultaneously hold equity and bonds of the company -- choose a less risk-inducing compensation structure....
Persistent link: https://www.econbiz.de/10012848455
, while RPE cash awards do not. These incentives can be significant in comparison to those conveyed by APE grants with similar …
Persistent link: https://www.econbiz.de/10013059189
This paper investigates interactions between two central corporate governance mechanisms: shareholder rights and managerial ownership. I find that the effect of managerial ownership on firm value crucially depends on shareholder rights. Managerial ownership enhances firm value when shareholder...
Persistent link: https://www.econbiz.de/10013068483
I estimate a dynamic agency model to quantify the importance of dismissals in CEO incentives -vis-à-vis pecuniary …
Persistent link: https://www.econbiz.de/10012851394
all cases, explicit, non-discretionary ESG incentives are economically insignificant relative to executives’ incentives to … companies, explicit, non-discretionary ESG incentives were incorporated only in annual bonus plans. One sample company – Duke …. While this approach could be seen as a roadmap for those seeking meaningful ESG-based pay incentives, this Article concludes …
Persistent link: https://www.econbiz.de/10013305552