CEO remuneration, financial distress and firm life cycle

被引：6
|
作者：
Chatterjee, Bikram [1 ]
Jia, Jing [2 ]
Nguyen, Mai [2 ]
Taylor, Grantley [3 ]
Duong, Lien [3 ]
机构：
[1] CPA Australia, Melbourne, Australia
[2] Univ Tasmania, Coll Business & Econ, Churchill Ave, Hobart, Tas 7005, Australia
[3] Curtin Univ, Sch Accounting Econ & Finance, Perth, WA, Australia
来源：
PACIFIC-BASIN FINANCE JOURNAL | 2023年 / 80卷
关键词：
CEO remuneration; Financial distress; Firm life cycle; Resource -based dependence theory; COMPENSATION; PERFORMANCE; RISK; PAY;
D O I：
10.1016/j.pacfin.2023.102050
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates the association between CEO remuneration and firms' state of financial distress and whether that relationship varies systematically across firms' life cycle stages. Using a sample of 6508 firm-year observations over the 2004-2021 period, we find that a firm's state of financial distress is negatively related to CEO remuneration. We also find that this relationship holds in the mature and old stages of a firm life cycle, but not in the young phase. Our findings are consistent with the predictions of resource-based and efficient contracting theories, and are robust to endogeneity tests. Overall, our results show that CEO remuneration is a significant determinant of corporate financial distress.
引用
收藏
页数：15
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