How executive remuneration responds to guidance: evidence from the Australian banking industry

Magee, S; Ng, CM; Wright, S

How executive remuneration responds to guidance: evidence from the Australian banking industry

Magee, S Ng, CM Wright, S

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Publisher:: Wiley
Publication Type:: Journal Article
Citation:: Accounting and Finance, 2021, 61, (4), pp. 5281-5307
Issue Date:: 2021-01-01

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Field	Value	Language
dc.contributor.author	Magee, S
dc.contributor.author	Ng, CM
dc.contributor.author	Wright, S https://orcid.org/0000-0001-8634-1428
dc.date.accessioned	2021-12-20T02:35:10Z
dc.date.available	2021-12-20T02:35:10Z
dc.date.issued	2021-01-01
dc.identifier.citation	Accounting and Finance, 2021, 61, (4), pp. 5281-5307
dc.identifier.issn	0810-5391
dc.identifier.issn	1467-629X
dc.identifier.uri	http://hdl.handle.net/10453/152408
dc.description.abstract	This study investigates whether executive remuneration responds to regulatory guidance. Using an exogenous shock in the form of a regulatory guideline issued by the Australian Prudential Regulation Authority to the Australian banking industry, we analyse whether remuneration is more aligned to prudent risk-taking since the guideline was published. We find that remuneration to both chief executive officers and the top five highest paid executives was adjusted to be more consistent with the guideline from its first year of operation. These findings are robust to the introduction of the Two Strikes Rule as an alternative explanation.
dc.language	English
dc.publisher	Wiley
dc.relation.ispartof	Accounting and Finance
dc.relation.isbasedon	10.1111/acfi.12758
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1402 Applied Economics, 1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment
dc.subject.classification	Accounting
dc.title	How executive remuneration responds to guidance: evidence from the Australian banking industry
dc.type	Journal Article
utslib.citation.volume	61
utslib.for	1402 Applied Economics
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access	*
pubs.consider-herdc	false
dc.date.updated	2021-12-20T02:35:09Z
pubs.issue	4
pubs.publication-status	Published
pubs.volume	61
utslib.citation.issue	4

Abstract:

This study investigates whether executive remuneration responds to regulatory guidance. Using an exogenous shock in the form of a regulatory guideline issued by the Australian Prudential Regulation Authority to the Australian banking industry, we analyse whether remuneration is more aligned to prudent risk-taking since the guideline was published. We find that remuneration to both chief executive officers and the top five highest paid executives was adjusted to be more consistent with the guideline from its first year of operation. These findings are robust to the introduction of the Two Strikes Rule as an alternative explanation.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/152408