Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Differences in CEO compensation under large and small institutional ownership

Tosun, Onur 2019. Differences in CEO compensation under large and small institutional ownership. European Financial Management 10.1111/eufm.12252
Item availability restricted.

[img] PDF - Accepted Post-Print Version
Restricted to Repository staff only until 11 December 2021 due to copyright restrictions.

Download (486kB)

Abstract

I examine the influence of large and small institutional investors on different components of chief executive officer (CEO) compensation, using U.S. data for 2006–2015. An increase in large institutional ownership reduces total pay and current incentive compensation (i.e. options, stocks, bonus pay), whereas small institutional investors lower long‐term incentive pay (i.e. pension, deferred pay, stock incentive pay). These findings are consistent with managerial agency theory and the substitution of incentive pay by institutional monitoring. The effects are stronger for higher ownership levels and firms with weak governance, less financial distress, long‐tenured CEOs, multiple segments, and more free cash flow.

Item Type: Article
Date Type: Published Online
Status: In Press
Schools: Business (Including Economics)
Publisher: Wiley:
ISSN: 1354-7798
Date of First Compliant Deposit: 20 December 2019
Date of Acceptance: 11 December 2019
Last Modified: 10 Mar 2020 13:54
URI: http://orca.cf.ac.uk/id/eprint/127649

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics