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

被引：6

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.

引用

页数：14

共 50 条

[41] CEO Compensation and the Seasoned Equity Offering Decision
Brazel, Joseph F.
Webb, Elizabeth
MANAGERIAL AND DECISION ECONOMICS, 2006, 27 (05) : 363 - 378
[42] The impact of incentives on CEO compensation and firm performance
Mahmoud M. Nourayi
Sudha Krishnan
Rivista Internazionale di Scienze Economiche e Commerciali, 2006, 53 (3): : 402 - 420
[43] CEO compensation, customer satisfaction, and firm value
Basuroy, Suman
Gleason, Kimberly C.
Kannan, Yezen H.
REVIEW OF ACCOUNTING AND FINANCE, 2014, 13 (04) : 326 - +
[44] CEO Compensation and Unobserved Firm Performance in Pakistan
Sheikh, Muhammad Fayyaz
Bhutta, Aamir Inam
Sultan, Jahanzaib
JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS, 2019, 6 (03): : 305 - 313
[45] Compensation committees, CEO pay and firm performance
Kanapathippillai, Sutharson
Gul, Ferdinand
Mihret, Dessalegn
Muttakin, Mohammad Badrul
PACIFIC-BASIN FINANCE JOURNAL, 2019, 57
[46] The preventive effect of hedge fund activism: investment, CEO compensation and payout policies
Zhu, Caroline Heqing
INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE, 2021, 17 (03) : 401 - 415
[47] Changing Dividend Policy in Korea: Explanations Based on Catering, Risk, and the Firm's Lifecycle
Kim, Injoong
Kim, Taekyu
ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, 2013, 42 (06) : 880 - 912
[48] Adjudicating the nexus of environmental, social and governance performance with dividend payout: the moderating role of firm's size
Karki, Uttam
Seth, Himanshu
MANAGERIAL FINANCE, 2025,
[49] CEO Personal Wealth, Equity Incentives and Firm Performance
Elsila, Anna
Kallunki, Juha-Pekka
Nilsson, Henrik
Sahlstrom, Petri
CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2013, 21 (01) : 26 - 41
[50] Stock trading behaviour and firm performance: Do CEO equity-based compensation and block ownership matter?
Chapple, Larelle
Chen, Brandon
Suleman, Tahir
Thu Phuong Truong
PACIFIC-BASIN FINANCE JOURNAL, 2021, 66

← 1 2 3 4 5 →