Explaining the structure of CEO incentive pay with decreasing relative risk aversion

被引：7

作者：

Chaigneau, Pierre ^{[1
]}

机构：

[1] HEC Montreal, Dept Finance, 3000 Chemin Cote Sainte Catherine, Montreal, PQ H3T 2A7, Canada

来源：

JOURNAL OF ECONOMICS AND BUSINESS | 2013年 / 67卷

关键词：

CEO pay; Principal-agent model; Corporate governance; Decreasing relative risk aversion; Stock-options;

D O I：

10.1016/j.jeconbus.2012.10.002

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

It is established that the standard principal-agent model cannot explain the structure of commonly used CEO compensation contracts if preferences with constant relative risk aversion are postulated. However, we demonstrate that this model has potentially a high explanatory power with preferences with decreasing relative risk aversion, in the sense that a typical CEO contract is approximately optimal for plausible preference parameters. (C) 2012 Elsevier Inc. All rights reserved.

引用

页码：4 / 23

页数：20

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