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1.
Elizabeth Webb 《Journal of Financial Services Research》2008,33(1):5-20
This study analyzes the effects of monitoring intensity on compensation and turnover for CEOs of publicly-traded banks. Using
a sample of banks from 1992 to 2004, I find that monitoring intensity plays a significant role in compensation levels, pay-for-performance
sensitivity, and CEO turnover. The results show that CEOs from highly-rated institutions receive smaller pay than CEOs from
competing institutions, and that monitoring intensity, as proxied by CEO age, influences the relationship between market performance
and executive incentives. These findings suggest that regulatory ratings and CEO age impact optimal bank governance structure
by varying incentive sensitivity to market performance.
相似文献
Elizabeth WebbEmail: |
2.
Zhilan Feng Chinmoy Ghosh C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2007,35(3):225-251
We analyze director compensation for Real Estate Investment Trusts (REITs) and investigate the relations between director
compensation and other measures of the board independence and board monitoring. Using 136 REITs in 2001, we find that REITs
that pay higher equity-based compensation to their board members are associated with higher financial performance. Our data
indicate that board equity-based compensation is positively related to the existence of an independent nomination committee,
however, it has no significant relationship with board size, proportion of outside directors, CEO duality and CEO tenure and
ownership.
相似文献
Zhilan FengEmail: |
3.
We empirically examine how governance structure affects the design of executive compensation contracts and in particular, the implicit weights of firm performance measures in CEO’s compensation. We find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (return on assets) compared to stock-based performance measures (market returns). In additional tests, we further find that CEO compensation in these firms has lower variance and a higher proportion of cash (versus stock-based) compensation. We further find that CEOs’ incentives (measured as changes in CEO annual wealth which includes expected changes in the value of the CEO’s equity holdings in addition to yearly compensation) do not vary across governance structures. These findings are consistent with CEOs in firms with high takeover protection and where they have more influence on governance negotiating different contracts.
相似文献
Fernando PenalvaEmail: Phone: +34-93-2534200 |
4.
Zhilan Feng Chinmoy Ghosh C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2007,35(4):385-410
This paper examines the relationship between CEO entrenchment and dividend policy of real estate investment trusts (REITs).
We develop an index for CEO entrenchment using CEO tenure and duality and find that this index has significant impact on dividend
policy. We further separate our sample into two sub-groups: REITs with and without nomination committees. Our analyses show
a strong positive relationship between CEO entrenchment level and dividend payout for REITs without a nomination committee.
In REITs with nomination committees, CEO entrenchment has less influence on dividend policy. We conclude that dividend policy
serves as a substitution for other governance mechanisms. Further, our results are consistent with the evidence for other
US firms—CEO that are more entrenched pay higher dividends to avoid shareholder sanctions and the threat of takeover.
相似文献
Zhilan FengEmail: |
5.
Economic consequences of financial reporting changes: diluted EPS and contingent convertible securities 总被引:1,自引:0,他引:1
This paper examines the economic consequences of changes in the financial reporting requirements for contingent convertible
securities (COCOs). Using a sample of 199 COCO issuers from 2000 to 2004, we find that issuers are more likely to restructure
or redeem existing COCOs to obtain more favorable accounting treatment when the financial reporting impact on diluted earnings
per share (EPS) is greater and when EPS is used as a performance metric in CEO bonus contracts. These results provide new
evidence that managers are willing to incur costs to retain perceived financial reporting and compensation benefits. We also
present evidence of significantly negative stock returns around event dates associated with the financial reporting changes,
consistent with investor anticipation of the agency costs associated with the rule change.
相似文献
Christine I. WiedmanEmail: |
6.
Mine Ertugrul Özcan Sezer C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2008,36(1):53-80
This paper studies the determinants of corporate hedging practices in the REIT industry between 1999 and 2001. We find a positive
significant relation between hedging and financial leverage, indicating the financial distress costs motive for using derivatives
in the REIT industry. Using estimates of the Black–Scholes sensitivity of CEO’s stock option portfolios to stock return volatility
and the sensitivity of CEO’s stock and stock option portfolios to stock price, we find evidence to support managerial risk
aversion motive for corporate hedging in the REIT industry. Our results indicate that CEO’s cash compensation and the CEO’s
wealth sensitivity to stock return volatility are significant determinants of derivative use in REITs. We also document a
significant positive relation between institutional ownership and hedging activity. Further, we find that probability of hedging
is related to economies of scale in hedging costs.
相似文献
C. F. SirmansEmail: |
7.
Ping Wang Masako Darrough Linna Shi 《Journal of Business Finance & Accounting》2016,43(9-10):1197-1243
Some CEOs decide voluntarily to issue a warning when they expect a negative earnings surprise. Prior research suggests that warnings contain incremental information beyond actual earnings; warning firms tend to experience permanent earnings decreases. This paper investigates whether compensation committees take warnings into account in setting CEO compensation. We find that warnings are significantly negatively (positively) associated with CEO bonus (option grants), suggesting that compensation committees adjust CEO compensation towards a more high‐powered structure after warnings. However, the sensitivity of bonus or option grants to earnings and stock returns is not affected except for bonus sensitivity to stock returns. We also find weak evidence of an increase in forced CEO turnover after warnings, accompanied by a significant increase in its sensitivity to stock returns. This benefits CEOs with higher ability but imposes more risk on other CEOs. These findings provide a partial explanation of why not every CEO facing a negative surprise decides to issue a warning. Our results are robust to various specifications. In particular, the impact of warnings on compensation appears invariant to the timing or the number of warnings. Overall, these findings suggest that the signal from warnings is used in determining CEO compensation and retention. 相似文献
8.
The association between audit committees,compensation incentives,and corporate audit fees 总被引:4,自引:3,他引:1
This study uses audit fee data from the 2001–2003 reporting periods to examine the relationship between measures of audit
committee effectiveness and compensation incentives with corporate audit fees. Our results suggest that audit committee size,
committee member expertise, and committee member independence are positively associated to audit fee levels, consistent with
the notion that audit committees serve as a complement to external auditors in monitoring management. In contrast, CEO long-term
pay and insider ownership are inversely related to audit fee levels, substituting for external audit effort in motivating
management. Notwithstanding results on the full sample of firm-years, we uncover significant differences in the determinants
of audit fees between the years examined. An important implication of these results is that explaining the intra-firm variation
in audit fees over time is clearly necessary in order to understand the antecedents and consequences of audit fees.
相似文献
James F. Waegelein (Corresponding author)Email: |
9.
Henryk Gurgul Paweł Majdosz Roland Mestel 《Financial Markets and Portfolio Management》2007,21(3):353-379
This study provides empirical evidence of the joint dynamics between stock returns and trading volume using stock data of
DAX companies. Contemporaneous as well as dynamic interactions are investigated for a period from January 1994 to December
2005 on a daily basis. Our results suggest that there is almost no relationship between stock return levels and trading volume
in either direction. We find that trading volume is contemporaneously positively related to return volatility. In addition,
we establish that lagged return volatility induces trading volume movements. Finally, we examine dependencies in the tails
and find no significant support for the hypothesis of the independence of the maximal values of absolute returns and trading
volume.
相似文献
Roland Mestel (Corresponding author)Email: |
10.
While there is little controversy on the profitability of momentum strategies, their implementation is afflicted with many
difficulties. Most important, chasing momentum can generate high turnover. Though there are already several attempts to make
momentum strategies less expensive with respect to transaction costs, we go a step further in the simplification of momentum
strategies. By restricting our sample to Switzerland’s largest blue-chip stocks and choosing only one winner and one loser
stock, we find average returns to our momentum arbitrage portfolios of up to 44% p.a. depending on the formation and holding
periods. While unconditional risk models are at odds with momentum profits, stock market predictability and time-varying expected
returns explain a large part of the momentum payoffs, including the post-holding period behavior of the winner and loser stocks
(overreaction and subsequent price correction).
相似文献
Markus M. SchmidEmail: |
11.
Kin Wai Lee Baruch Lev Gillian Hian Heng Yeo 《Review of Quantitative Finance and Accounting》2008,30(3):315-338
Much of the research on management compensation focuses on the level and structure of executives’ pay. In this study, we examine
a compensation element that has not received so far considerable research attention—the dispersion of compensation across managers—and its impact on firm performance. We examine the implications of two theoretical models
dealing with pay dispersion—tournament versus equity fairness. Tournament theory stipulates that a large pay dispersion provides
strong incentives to highly qualified managers, leading to higher efforts and improved enterprise performance, while arguments
for equity fairness suggest that greater pay dispersion increases envy and dysfunctional behavior among team members, adversely
affecting performance. Consistent with tournament theory, we find that firm performance, measured by either Tobin’s Q or stock performance, is positively associated with the dispersion of management compensation. We also document that the
positive association between firm performance and pay dispersion is stronger in firms with high agency costs related to managerial
discretion. Furthermore, effective corporate governance, especially high board independence, strengthens the positive association
between firm performance and pay dispersion. Our findings thus add to the compensation literature a potentially important
dimension: managerial pay dispersion.
相似文献
Gillian Hian Heng Yeo (Corresponding author)Email: |
12.
Durables like cars or houses are a substantial component in the balance sheets of households. These durables are exposed to
risk and can be insured in the market. We build a dynamic model in which agents have three possibilities to cope with the
risk exposure of the durable stock: (i) purchase of market insurance, (ii) buffer-stock saving of the riskless asset or (iii)
adjustment of the durable stock. We calibrate our model to the US economy and find a small role for market insurance.
相似文献
Winfried Koeniger (Corresponding author)Email: |
13.
John J. Maher Robert M. Brown Raman Kumar 《Review of Quantitative Finance and Accounting》2008,31(2):167-189
We examine the valuation effects of overall demand for corporate equities combined with the influence of abnormal earnings
and unexpected funds flow. Our results indicate that the expected and unexpected net new total flow of funds into all stock
mutual funds do not by themselves have a meaningful effect on firm equity valuation. However, we find the combination of unexpected
funds flow and realized abnormal earnings have significant and important valuation effects. Importantly, the valuation impact
is greatest for those firms with high earnings growth potential that also operate in an environment characterized by high
information asymmetry.
相似文献
Raman KumarEmail: |
14.
Why do firms repurchase stock to acquire another firm? 总被引:1,自引:0,他引:1
Robin S. Wilber 《Review of Quantitative Finance and Accounting》2007,29(2):155-172
This study investigates firms that repurchase their stock to finance an acquisition. Since research shows that cash-financed
acquisitions perform better than stock-financed acquisitions, why do firms that have available cash initiate the extra transactional
step. I find these firms are well compensated for their efforts, especially in the long run. On average, these firms have
negative abnormal returns prior to their repurchase announcements and thus may choose repurchasing to signal undervaluation.
Furthermore, the stock acquisition step allows these firms to share risk, counteract the negative effects of dilution, and
enjoy a tax advantage for their efforts.
相似文献
Robin S. WilberEmail: |
15.
Corporate cash holdings: Evidence from Switzerland 总被引:1,自引:0,他引:1
Wolfgang Drobetz Matthias C. Grüninger 《Financial Markets and Portfolio Management》2007,21(3):293-324
This paper investigates the determinants of cash holdings for a comprehensive sample of Swiss non-financial firms between
1995 and 2004. The median Swiss firm holds almost twice as much cash and cash equivalents as the median US or UK firm. Our
results indicate that asset tangibility and firm size are both negatively related to corporate cash holdings, and that there
is a non-linear relationship between the leverage ratio and liquidity. Dividend payments and operating cash flows are positively
related to cash reserves, but we cannot detect a significant relationship between growth opportunities and cash holdings.
Most of these empirical findings, but not all of them, can be explained by the transaction costs motive and/or the precautionary
motive. Analyzing the corporate governance structures of Swiss firms, we document a non-linear relationship between managerial
ownership and cash holdings, indicating an incentive alignment effect and an opposing effect related to increasing risk aversion.
Finally, our results suggest that firms in which the CEO simultaneously serves as the COB hold significantly more cash.
相似文献
Matthias C. GrüningerEmail: |
16.
Value relevance of value-at-risk disclosure 总被引:2,自引:2,他引:0
Chee Yeow Lim Patricia Mui-Siang Tan 《Review of Quantitative Finance and Accounting》2007,29(4):353-370
The SEC issued FRR No. 48 in 1997 to enhance public disclosure of firms’ exposures to market risk. We examine whether the
quantitative value-at-risk (VAR) estimates disclosed by 81 non-financial firms during the period 1997–2002 are value-relevant
using the earnings-returns relation. The empirical results indicate that high VAR is associated with weaker earnings-returns
relation. Further analysis shows that VAR is positively and significantly associated with future stock return volatility.
Our evidence suggests that investors perceive the earnings of firms with substantial market risk exposure to be less persistent,
and adjust the future abnormal earnings for the higher risk exposure. Thus, this results in a lower expected rate of return.
相似文献
Chee Yeow LimEmail: |
17.
We examine stock sales as a managerial incentive to help explain the discontinuity around the analyst forecast benchmark. We find that the likelihood of just meeting versus just missing the analyst forecast is strongly associated with subsequent managerial stock sales. Moreover, we provide evidence that managers manage earnings prior to just meeting the threshold and selling their shares. Finally, the relation between just meeting and subsequently selling shares does not hold for non-manager insiders, who arguably cannot affect the earnings outcome, and is weaker in the presence of an independent board, suggesting that good corporate governance mitigates this strategic behavior.
相似文献
Vicki Wei TangEmail: |
18.
Piet M. A. Eichholtz Nils Kok Roger Otten 《The Journal of Real Estate Finance and Economics》2008,36(4):405-426
We study the drivers of executive compensation in the listed UK property sector. The UK provides an excellent opportunity
to analyze executive compensation due to high transparency in the different components of executive compensation. We show that company size is the most important variable in explaining the level of executive compensation. We find that
absolute and relative share performance significantly explains long-term compensation, that management style has a distinct
influence on the level of executive compensation, and that using alternative monitoring mechanisms (institutional shareholders,
debtholders, and outside directors) leads to higher levels of long-term incentives. We find only weak evidence of pay-performance
sensitivity for both cash and long-term compensation. Executive shareholdings provide a much stronger link between pay and
performance than does executive compensation.
相似文献
Piet M. A. EichholtzEmail: |
19.
Chaur-Shiuh Young Liu-Ching Tsai Hui-Wen Hsu 《Review of Quantitative Finance and Accounting》2008,30(3):297-314
This study examines the relation between controlling shareholders’ excess board seats control and financial restatements.
An analysis of a sample comprising 106 Taiwanese listed firms (53 restating firms vs. 53 non-restating control firms) shows
that financial restatements are more likely to occur when there is a greater divergence between controlling shareholders’
board seats control rights and ownership rights. We also find that the excess board seats control of controlling shareholders
is positively associated with the materiality and pervasiveness of financial restatements. Overall, these results suggest
that the entrenchment incentive from controlling shareholders’ excess control motivates firms to adopt aggressive accounting
policies.
相似文献
Hui-Wen HsuEmail: |
20.
We examine the motives for takeovers in New Zealand surrounding the 1987 stock market crash and compare with the US findings
of Gondhalekar and Bhagwat (2003). There are a number of structural differences between the New Zealand and US markets that could impact on merger motives.
Compared with the US, New Zealand is a small capital market; with weak takeover regulation and a prolonged aftermath of the
1987 stock market crash. Consistent with US research, we find evidence of synergy and hubris motivations in New Zealand takeovers
although we find the synergy motivation is stronger. Contrary to expectations we find no evidence of agency motivated takeovers.
相似文献
Hamish D. AndersonEmail: |