CEO and CFO equity compensation and dividend payout over the firm lifecycle

被引：7
作者：
Ding, Chao [1 ]
Ho, Choy Yeing [1 ]
Chang, Millicent [2 ]
机构：
[1] Univ Western Australia, UWA Business Sch, 35 Stirling HWY, Crawley, WA 6009, Australia
[2] Univ Wollongong, Fac Business, Sch Accounting Econ & Finance, Northfields Ave, Wollongong, NSW 2522, Australia
来源：
GLOBAL FINANCE JOURNAL | 2021年 / 49卷
关键词：
Equity incentives; Dividends; Lifecycle; CEOs; CFOs; AGENCY COSTS; EXECUTIVE-COMPENSATION; STOCK-OPTIONS; CORPORATE GOVERNANCE; PERFORMANCE-MEASURES; INCENTIVES; POLICY; DETERMINANTS; REMUNERATION; REPURCHASES;
D O I：
10.1016/j.gfj.2020.100562
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the separate and joint effects of CEO and CFO equity compensation on the dividend payout decision, taking into account changes in the relationship over the firm's lifecycle. Compensation contracts and dividend payout both are used to reduce agency costs, which change over a firm's lifecycle. Studies report a negative association between CEO equity compensation and dividend payout, suggesting a substitutionary relationship. Our results show that when the two are considered jointly, CFO equity compensation dominates CEO compensation, indicating the need for sophisticated financial expertise in the dividend decision. The relationship appears only in mature firms, signifying that agency problems are of most concern during the mature stage of the firm lifecycle.
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页数：14
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