CEO compensation and banks' risk-taking during pre and post financial crisis periods

被引：15

作者：

Shah, Syed Zulfiqar Ali ^{[1
]}

Akbar, Saeed ^{[2
]}

Liu, Jia ^{[3
]}

Liu, Ziyu ^{[1
]}

Cao, Sichen ^{[1
]}

机构：

[1] Univ Warwick, Warwick Business Sch, Scarman Rd, Coventry CV4 7AL, W Midlands, England

[2] Hull Univ, Sch Business, Cottingham Rd, Kingston Upon Hull HU6 7RX, N Humberside, England

[3] Univ Salford, Salford Business Sch, Lady Hale Bldg, Salford M5 4WT, Lancs, England

来源：

RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE | 2017年 / 42卷

关键词：

Compensation; Risk-taking; Financial crisis; TARP; EXECUTIVE STOCK-OPTIONS; MANAGERIAL INCENTIVES; OWNERSHIP STRUCTURE; FIRM; INDUSTRY; TARP; DEREGULATION; BEHAVIOR; POLICIES; BONUSES;

D O I：

10.1016/j.ribaf.2017.07.089

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the impact of CEO compensation on banks' risk during both pre and postfinancial crisis periods. Our results suggest a negative relationship between CEO bonuses and banks' risk in the pre-financial crisis period. Similarly, restricted shares and options granted to CEOs in the post-financial crisis period also appear to decrease banks' risk. In contrast, we observe a positive influence of the Troubled Asset Relief Program (TARP) on banks' risk. Our results also show that the length of time to maturity of options influences banks' risk-taking behavior. Our findings have useful implications for formulating and regulating CEO compensation structure.

引用

页码：1489 / 1503

页数：15

共 48 条

[1] MANAGERIAL INCENTIVES AND CORPORATE-INVESTMENT AND FINANCING DECISIONS [J].

AGRAWAL, A ;

MANDELKER, GN .

JOURNAL OF FINANCE, 1987, 42 (04) :823-837

[2]

[Anonymous], 456 FED RES BANK NEW

[3] The relation between equity incentives and misreporting: The role of risk-taking incentives [J].

Armstrong, Christopher S. ;

Larcker, David F. ;

Ormazabal, Gaizka ;

Taylor, Daniel J. .

JOURNAL OF FINANCIAL ECONOMICS, 2013, 109 (02) :327-350

[4] Executive stock options, differential risk-taking incentives, and firm value [J].

Armstrong, Christopher S. ;

Vashishtha, Rahul .

JOURNAL OF FINANCIAL ECONOMICS, 2012, 104 (01) :70-88

[5] Competition, Bonuses, and Risk-taking in the Banking Industry [J].

Bannier, Christina E. ;

Feess, Eberhard ;

Packham, Natalie .

REVIEW OF FINANCE, 2013, 17 (02) :653-690

[6]

Bebchuk L., 2004, Pay without Performance The Unfulfilled Promise of Executive Compensation

[7]

Bebchuk L.A., 2010, YALE J REGUL, V27, P257

[8] Executive compensation as an agency problem [J].

Bebchuk, LA ;

Fried, JA .

JOURNAL OF ECONOMIC PERSPECTIVES, 2003, 17 (03) :71-92

[9] Compensation Vega, Deregulation, and Risk-Taking: Lessons from the US Banking Industry [J].

Belkhir, Mohamed ;

Chazi, Abdelaziz .

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2010, 37 (9-10) :1218-1247

[10]

Berndt Antje, 2010, 16175 NBER

← 1 2 3 4 5 →