CEO option compensation and systemic risk in the banking industry

被引：3
作者：
Kim, Jeong-Bon [1 ]
Li, Li [2 ]
Ma, Mary L. Z. [3 ]
Song, Frank M. [4 ]
机构：
[1] Univ Waterloo, Sch Accounting & Finance, Waterloo, ON N2L 3G1, Canada
[2] Univ Int Business & Econ, Sch Int Trade & Econ, Beijing, Peoples R China
[3] York Univ, Sch Adm Studies, Toronto, ON M3J 2R7, Canada
[4] Univ Hong Kong, Sch Econ & Finance, Hong Kong, Hong Kong, Peoples R China
来源：
ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS | 2016年 / 23卷 / 02期
基金：
中国国家自然科学基金;
关键词：
G21; G32; G01; Stock option compensation; CEO risk-taking incentives; systemic risk; banking; EXECUTIVE STOCK-OPTIONS; MANAGERIAL INCENTIVES; CROSS-SECTION; AGENCY COSTS; LIQUIDITY; OWNERSHIP; INSURANCE; INFORMATION; MANAGEMENT; CONTAGION;
D O I：
10.1080/16081625.2016.1155250
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We document that CEO risk-taking incentives induced by stock option compensation increase a bank's contribution to systemic distress risk and systemic crash risk through reacting to common risk exposure of the banking industry. We also find that this relation operates through channels of engagement in non-interest income-generating activities and maturity mismatch associated with short-term debt financing. Further analysis reveals that CEO option-based risk-taking incentives increase investments in innovative financial products that form naturally interconnected networks, which increase systemic risk. Finally, we show that market illiquidity and financial crisis accentuate the relation between CEO risk-taking incentives and systemic risk.
引用
收藏
页码：131 / 160
页数：30
相关论文
共 50 条
[21]   Bank systemic risk and CEO overconfidence [J].
Lee, Jin-Ping ;
Lin, Edward M. H. ;
Lin, James Juichia ;
Zhao, Yang .
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE, 2020, 54
[22]   CEO Compensation Risk and Timely Loss Recognition [J].
Brockman, Paul ;
Ma, Tao ;
Ye, Jianfang .
JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2015, 42 (1-2) :204-236
[23]   The Influence of CEO Power on Compensation Contract Design [J].
Abernethy, Margaret A. ;
Kuang, Yu Flora ;
Qin, Bo .
ACCOUNTING REVIEW, 2015, 90 (04) :1265-1306
[24]   Financial architecture, systemic risk, and universal banking [J].
Anthony Saunders ;
Ingo Walter .
Financial Markets and Portfolio Management, 2012, 26 (1) :39-59
[25]   Financial architecture, systemic risk, and universal banking [J].
Saunders, Anthony ;
Walter, Ingo .
FINANCIAL MARKETS AND PORTFOLIO MANAGEMENT, 2012, 26 (01) :39-59
[26]   Systemic risk in the European sovereign and banking system [J].
Xu, Simon ;
In, Francis ;
Forbes, Catherine ;
Hwang, Inchang .
QUANTITATIVE FINANCE, 2017, 17 (04) :633-656
[27]   Measuring systemic risk in the European banking sector: a copula CoVaR approach [J].
Karimalis, Emmanouil N. ;
Nomikos, Nikos K. .
EUROPEAN JOURNAL OF FINANCE, 2018, 24 (11) :944-975
[28]   Agent-based modeling of systemic risk in the European banking sector [J].
Teply, Petr ;
Klinger, Tomas .
JOURNAL OF ECONOMIC INTERACTION AND COORDINATION, 2019, 14 (04) :811-833
[29]   Dynamic Forecasting for Systemic Risk in China's Commercial Banking Industry Based on Sequence Decomposition and Reconstruction [J].
Li, Zhengyong ;
Fu, Deyin ;
Li, Haiting .
IEEE ACCESS, 2023, 11 :132068-132077
[30]   Computational Linguistic and SNA to Classify and Prevent Systemic Risk in the Colombian Banking Industry [J].
Sandoval, Luis G. Moreno ;
Rojas, Liliana M. Pantoja ;
Pomares-Quimbaya, Alexandra ;
Orozco, Luis Antonio .
INTERNATIONAL JOURNAL OF E-BUSINESS RESEARCH, 2023, 19 (01)
12345