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

页数：15

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