Chen, Jie
[VerfasserIn]
;
Goergen, Marc
[Sonstige Person, Familie und Körperschaft];
Leung, Woon Sau
[Sonstige Person, Familie und Körperschaft];
Song, Wei
[Sonstige Person, Familie und Körperschaft]
CEO and Director Compensation, CEO Turnover and Institutional Investors
Anmerkungen:
In: Journal of Banking and Finance, Vol. 103, No. 18-35, 2019
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 1, 2019 erstellt
Beschreibung:
This paper provides new evidence that correlated abnormal compensation of CEOs and directors is symptomatic of agency problems associated with cronyism. We find that director abnormal compensation has a negative impact on the likelihood of CEO turnover and reduces the sensitivity of CEO turnover to poor stock performance. However, for firms with greater institutional ownership the adverse effects of director abnormal compensation are mitigated, and the negative impact of abnormal compensation on firm performance is reduced. These findings suggest that correlated abnormal compensation of CEOs and directors is likely associated with agency problems