CEO Pay Mix and Firm Performance

• 발행기관: 한국자료분석학회
• 저자명: Ji-Young Ahn Dae Yong Jeong
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.12 No.5, 2395~2405쪽, 전체 11쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2010.10.30

영문 초록

This paper explores the relationship between the proportion of cash-based pay to total compensation and the market valuation of firm. In a cross-section of 2,257 publicly traded firms in the U.S., we found the non-linear relationship between pay mix and market valuation of the firm’s assets. Tobin’s Q falls as the proportion of cash-based pay to total compensation increases from 0 to 50%, and continue to decrease, although more slowly, as pay mix rises further to 75% and begin to rise as pay mix rises beyond 75%. One interpretation of these findings is that the decreases of Tobin’s Q with the cash-pay mix reflect a misalignment of incentive between CEOs and shareholders, while the increase reflects risk-insurance effects of CEO contract, suggesting the contrasting effects of a cashbased compensation.

목차

Ⅰ. Introduction

Ⅱ. Literature Review & Hypotheses

Ⅲ. Methods

Ⅳ. Results

Ⅴ. Discussion and Conclusions

References

키워드

executive compensation pay mix piecewise regression agency theory