CEO Compensation: Does Financial Crisis Matter?
نویسندگان
چکیده
منابع مشابه
Bank CEO Optimism and the Financial Crisis∗
I test theories of the recent financial crisis by studying how banks’ pre-crisis investments connect to their CEOs’ beliefs. Using different proxies for beliefs, I find banks with larger housing investments and worse crisis performance had CEOs who were more optimistic ex ante. Banks with the most optimistic CEOs experienced 20 percentage points higher real estate loan growth, and 15 percentage...
متن کاملDiscussion of “CEO Compensation, Regulation, and Risk in Banks: Theory and Evidence from the Financial Crisis”
The Cerasi and Oliviero contribution in this issue explores an important question from the banking regulation perspective: how does bank CEO compensation affect risk taking? It first lays out a model that illustrates how using variable compensation for bank CEOs (an exogenous free parameter in the model) may have an ambiguous effect on the CEO’s risk-taking behavior. The key feature of the mode...
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We investigate whether foreign ownership shields firms from liquidity constraints following a financial crisis. Recent crises in East Asia, Latin America, and Russia have been characterized both by large currency devaluations and widespread collapse of the banking sector. Although a currency devaluation should increase exporters’ competitiveness and investment, a collapsing banking system may d...
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We examine the association between a firm’s ex ante risk of financial distress and the compensation and incentives provided to newly hired CEOs. Our findings are as follows. First, new CEOs at firms with higher bankruptcy risk receive substantially less compensation than new CEOs at low-risk firms. Second, while pay-performance sensitivity is higher for new CEOs at high-risk firms, the semi-ela...
متن کاملDoes Local Financial Development Matter?
We study the effects of differences in local financial development within an integrated financial market. We construct a new indicator of financial development by estimating a regional effect on the probability that, ceteris paribus, a household is shut off from the credit market. By using this indicator we find that financial development enhances the probability an individual starts his own bu...
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ژورنال
عنوان ژورنال: International Business Research
سال: 2014
ISSN: 1913-9012,1913-9004
DOI: 10.5539/ibr.v7n4p125