CEO compensation structure and firm performance

Publication Type:
Journal Article
Citation:
Accounting and Finance, 2011, 51 (3), pp. 745 - 763
Issue Date:
2011-09-01
Metrics:
Full metadata record
Files in This Item:
Filename Description Size
Thumbnail2010004915OK.pdf184.44 kB
Adobe PDF
The objectives of our study are to estimate a model of 'efficient' compensation structure based on firm characteristics and test the performance consequences of deviation from the efficient compensation structure. Our results are based on 3503 firm years for the period from 1999 to 2005. The results suggest that firms whose CEOs receive compensation inconsistent with their firm characteristics have a lower performance compared to those firms whose CEOs' compensation is consistent with their firms' characteristics. Our measure of performance is based on both accounting and market-based performance measures. Overall, our study provides some important new insights into the links between CEO compensation structure and firm performance. © 2010 The Authors. Accounting and Finance © 2010 AFAANZ.
Please use this identifier to cite or link to this item: