How do sovereign wealth funds pay their portfolio companies' executives? Evidence from Kuwait

被引：1

作者：

Alhashel, Bader S. ^{[1
]}

Albader, Sulaiman H. ^{[2
]}

机构：

[1] Kuwait Univ, Kuwait, Kuwait

[2] Univ Illinois, Champaign, IL USA

来源：

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2020年 / 67卷

关键词：

Executive compensation; Firm performance; Ownership structure; Sovereign wealth funds; Corporate governance; TOP-MANAGEMENT COMPENSATION; CORPORATE GOVERNANCE; CEO COMPENSATION; INSTITUTIONAL INVESTORS; FIRM PERFORMANCE; SHAREHOLDER ACTIVISM; GOVERNMENT OWNERSHIP; BOARD STRUCTURE; AGENCY COSTS; INVESTMENT;

D O I：

10.1016/j.iref.2020.02.003

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Sovereign wealth funds (SWFs) are major players in the global markets. We contribute to the corporate governance literature by examining the possible value SWFs bring to their domestic holdings. We specifically examine the impact of SWFs' ownership on firm executive compensation. Using data on Kuwaiti SWFs, we find that the pay-performance relationship diminishes as the cash flow rights of the SWF are greater. Moreover, having the SWF as the ultimate owner in the ownership chain of the firm does not alleviate the adverse effects of the divergence in cash flow and control rights. This evidence supports the notion that SWFs impose agency costs on their targets.

引用

页码：303 / 322

页数：20

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